Q&As
What are the rules determining which parties must execute a multiparty deed under section 1(2)(b) of the Law of Property (Miscellaneous Provisions) Act 1989? Consider the scenario involving a bilateral debenture, which may or may not include obligations of the chargeholder, but will at least include their agreement to the jurisdiction provision.
Helpful Commentary on this provision in the context of security documents can be found in: Deeds and their execution: Lingard’s Bank Security Documents [3.38].
This states: 'In practical terms, any security documents intended to be by deed must make this clear on the face of the document (section 1(2)(a)of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989)). The subsection allows a degree of latitude in that the document may describe itself as a deed or express itself to be executed as a deed or otherwise make the intention clear. '
It goes on to state:
‘In addition, the document must be validly executed as a deed by one of the parties (LP(MP)A 1989, s 1(2)(b))...If the charge relates to an interest in land, it should be countersigned
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