Selling a parcel of land can be more complex than selling an entire property. Where only part of the land within an existing Land Registry title is being transferred, there are a number of important legal considerations that should be addressed before the transaction proceeds.
Taking the time to deal with these issues early can help avoid delays, protect your retained land and ensure the transfer accurately reflects the intentions of both parties.
A Land Registry Compliant Transfer Plan
When selling part of a registered title, a Land Registry compliant transfer plan will be required.
The plan must:
- Be drawn to scale.
- Include a north point.
- Clearly identify the land being transferred.
- Clearly show the land that will remain in the seller’s ownership.
A compliant plan is essential to enable the Land Registry to accurately register the transfer and avoid unnecessary delays.
Rights Granted and Rights Reserved
One of the most important aspects of selling part of a property is deciding what legal rights should be granted to the buyer and which rights should be retained by the seller.
These rights help ensure that the land being retained can continue to be used and enjoyed as intended.
Rights Granted
Rights granted for the benefit of the land being sold may include:
- Rights of way.
- Rights for the passage of utilities through existing service media.
- Rights to enter the retained land to inspect, repair and maintain service media serving the land being sold.
- Rights of light and air.
- Rights of support and protection from the retained land.
Carefully considering these rights helps ensure the seller understands what rights they are granting to a buyer and how that it impacts their retained land.
Rights Reserved
It is equally important to consider the rights that should be reserved for the benefit of the seller’s retained land.
These may include:
- Rights of way.
- Rights to continue using existing services or to install new services.
- Rights for the passage of utilities through service media.
- Rights to enter the land being sold to inspect, repair and maintain service media serving the retained land.
- Rights of light and air.
- Rights of support and protection.
- Rights to build on or develop the retained land in the future.
Reserving the appropriate rights can help preserve the value, use and future development potential of the land that remains in the seller’s ownership.
Covenants
A transfer of part may also include new covenants that place obligations or restrictions on either the buyer or the seller.
These generally fall into two categories.
Positive Covenants
Positive covenants require a party to carry out a particular obligation. Examples include:
- Contributing towards the repair and maintenance of shared facilities.
- Maintaining boundary walls or fences.
- Keeping service media in good repair and condition.
- Contributing towards the cost of repairing and maintaining party walls.
Restrictive Covenants
Restrictive covenants place limits on how the land can be used. Examples may include restrictions on:
- Erecting certain buildings or structures.
- Using the land for particular purposes.
- Causing nuisance.
Appropriate covenants can help protect the long-term interests of the seller and reduce the potential for future disputes.
Indemnity Covenants
Where appropriate, a transfer deed may also include an indemnity covenant.
An indemnity covenant is an agreement by the buyer to reimburse the seller for any losses or liabilities arising from the buyer’s breach of covenant. Where the property remains subject to existing covenants, this can provide an important layer of protection for the seller.
How Lewis Denley Solicitors Can Help
Selling part of a property involves much more than agreeing a purchase price. Every transaction should be carefully structured to ensure the appropriate plans, rights, reservations and covenants are included to protect the interests of the seller.
At Lewis Denley Solicitors, our Real Estate team combines technical legal expertise with a practical, forward-thinking approach. We advise businesses, landowners and private individuals on all aspects of commercial property transactions, providing clear, straightforward advice at every stage.
Our Real Estate team includes Louise Hollow, Commercial Property Solicitor, who works closely with clients to ensure each transaction is handled efficiently and that the legal documentation reflects their long-term objectives.
If you are considering selling a parcel of land, we are here to help.
Contact Lewis Denley Solicitors today on 01403 456430 to speak with Louise Hollow or a member of our Real Estate team.