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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10550
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I have a situation whereby I am selling a 50% stake in a

Customer Question

Hello
I have a situation whereby I am selling a 50% stake in a property to my erstwhile business partner and we have agreed a sale value predicated on a formula.
The property is a commercial premises jointly owned comprising of 2 flats and a retail unit below.
The formula is based on a rental yield .
However at present we are fighting a planning appeal with the local authority in Croydon. The appeal hearing is to be decided at the end of July 16 .
If the appeal successds my share of sale price will increase by £40k .
BUT - we would like to conclude the sale now .
The price he will pay now is of the lower amount - this is on the sale deed. It is circa £125k.
However if the appeal is successful he promises to pay me an additional £40K.
How do I protect my position bearing in mind that this is contingent on a future outcome?
I was thinking if I get a DEED drawn up signed by both parties -correctly executed would do the trick.
Would this work ?
Kind Regards
David Rodricks
Submitted: 1 year ago.
Category: Law
Expert:  Aston Lawyer replied 1 year ago.

Hi David, thanks for your enquiry. The best way to protect your financial position would be for an additional provision being inserted in the Land Registry Transfer (the document transferring the property to your partner) stating that if planning permission is obtained that the additional sum will be paid to you within 7 days. This agreement would then be binding on your partner. On top of this, your Solicitor can arrange to register a Restriction at the Land Registry, meaning that your partner would not be able to sell the property without your consent. Although doubtful, this would prevent your partner being able to sell without you signing a certificate confirming that he has complied wit the terms of the agreement within the Transfer document. The above is pretty straight forward for your Solicitor to draw up. I hope this assists you and sets out the legal position. If I have helped, I would be grateful if you could rate my answer. Kind Regards Al