Signing Commercial Property Contracts and Deeds
Contracts and Deeds are only valid if they are executed and signed correctly. If you have ever wondered if you are following the correct formalities to sign a contract and/or a deed, and/or whether they can be signed electronically, this subfolder contains helpful Guidance Notes on this topic. These Guidance Notes are practical guides to getting it right when it comes to the process of executing agreements.
The Land Registry has strict requirements for documents submitted for registration and it is important that these are correct.
The Guidance Note: Formalities for Signing Property Contracts and Deeds is a practical guide to getting it right when it comes to executing property deeds and contracts. A transaction will not be valid unless the documents are executed correctly and consequently could be rejected by the Land Registry.
The Guidance Note: Electronic Execution of Property Deeds explains the different methods of electronic execution of property documents which are acceptable to the Land Registry.
Signing Commercial Property Contracts and Deeds is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
How must a contract to buy or lease commercial property be signed to be valid? +
A contract for the sale or other disposition of an interest in land must be in writing, must contain all the terms the parties have agreed in one document (or in each part where contracts are exchanged) and must be signed by or on behalf of each party. That is set by the Law of Property (Miscellaneous Provisions) Act 1989. A contract that leaves out an agreed term or is not signed by both sides may be void, so the drafting and signing need care.
What makes a deed such as a lease or transfer validly executed? +
A deed must make clear on its face that it is a deed, be signed by the party (an individual signs in the presence of a witness who then signs), and be delivered as a deed. Those requirements come from the Law of Property (Miscellaneous Provisions) Act 1989. A company can execute either by two authorised signatories or by a director in the presence of a witness, or under its common seal. Get the attestation and delivery right, because a defective deed can fail.
Why does correct execution matter for the Land Registry? +
Because the Land Registry has strict requirements for documents submitted for registration and will reject a document that is not executed correctly. If a transfer or lease is defective, the transaction may not be valid and registration can be refused, which delays or unravels the deal and can affect priority. Following the signing and attestation formalities carefully, and checking the current Land Registry practice, avoids a rejected application. Simply-Docs provides guidance notes on getting execution right.
