By Anne Rodell; College of Law (England and Wales)
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Extra info for Commercial property. 2011
The joint venture contract arrangement is ‘tax transparent’, so each party will be responsible for payment of income tax on its profits and capital gains tax (CGT) on its capital gains, and will get the direct benefit of any tax deductions and reliefs. Moreover, as there is no new legal entity, it is less likely that one party would be liable for the actions of another (subject to the terms of the agreement). On the other hand, as there is no separate legal entity, there will be unlimited liability in relation to any losses.
1), a right of preemption does not oblige the seller to sell the property to the developer, or indeed to sell it at all. com/4-200-2514>. com/> or call 020 7202 1200. © Legal & Commercial Publishing Limited 2010. Many contracts for the sale of development land will include provisions with for the possible payment by the buyer of ‘overage’. Overage provisions are generally used where a seller wishes to share in any potential development value in a property that might be realised after completion of a sale.
You have received a copy of the valuation report in respect of Unit 3. The surveyor has noted: (a) The rear wall of the building is bowing, and there are some diagonal cracks running between the windows on the first and second floors. It is not clear whether these cracks relate to settlement which took place many years ago, or whether any movement is recent. The solicitors acting for Ross have investigated title to the property and have reported the following issues to you: (b) The sellers are currently in dispute with the owners of an adjoining property (Unit 4) regarding a right of way over Unit 3 to access Unit 4 (which is also in the course of development).
Commercial property. 2011 by Anne Rodell; College of Law (England and Wales)