UUÂãÁÄÖ±²¥

View the related checklists about Rule against perpetuities

Negotiating overage—acting for the buyer—checklist

Negotiating overage—acting for the buyer—checklist Basic terms At the outset consider whether overage is appropriate for the transaction. It may be the case that your client’s interests would be better served by agreeing an increased purchase price or by entering into a conditional contract instead. Overage clauses can be complex and expensive to negotiate. Always consider whether the overage terms are consistent with the buyer’s intentions for the site. Ensure that the overage includes clear definitions of: • the overage period (note that, from 6 April 2010, the rule against perpetuities does not apply to most commercial interests and therefore, if no overage period is specified, there is a risk that the agreement could be perpetual) • the property which will be subject to the overage Include a ‘good faith’ clause as this may assist in the event of a dispute. Ensure that the buyer is aware that ‘waiting out’ the overage period and deliberately avoiding triggering the overage may not be valid strategy, especially if...

Negotiating overage—acting for the seller—checklist

Negotiating overage—acting for the seller—checklist Basic terms At the outset consider whether overage is appropriate for the transaction. It may be the case that your client’s interests would be better served by agreeing an increased purchase price or by entering into a conditional contract instead. Overage clauses can be complex and expensive to negotiate. If overage is to be imposed then always consider the circumstances in which the seller is expecting or hoping to receive a further payment and how the buyer could avoid triggering the overage. Ensure that the overage includes clear definitions of: • the overage period (note that, from 6 April 2010, the rule against perpetuities does not apply to most commercial interests and therefore, if no overage period is specified, there is a risk that the agreement could be perpetual) • the property which will be subject to the overage • any individual units to be sold or constructed, making it clear whether parking spaces and other such ancillary areas are part of a...

View the related practice notes about Rule against perpetuities

Resulting trusts

Resulting trusts represent one of the three types of trust which do not require to be declared or evidenced in writing. The others are constructive and implied trusts, although it is perhaps doubtful whether there is any form of implied trust which is not in fact either a resulting trust or a constructive trust.Categorisation of resulting trustsResulting trusts are either presumed or automatic.A presumed resulting trust arises:•where there is a voluntary transfer of property to another, or•where title to property is put into the name of someone other than the person who has provided the purchase money or other consideration for the acquisitionAn automatic resulting trust arises where the disposing party has failed to dispose of their entire legal and beneficial interest in the property which is the subject of the disposal.Presumed resulting trustsVoluntary conveyanceThe presumption of a rebuttable resulting trust arises on the voluntary transfer of personalty. However, the position is less clear in the case of land, given the terms of section 60(3) of the Law of Property...

Creation of trusts—by declaration

Creation of trusts—by declaration Express lifetime declarations Where a trust is created by an express lifetime declaration, the settlor simply declares that they hold the trust property on trust for the specified person or object absolutely. The settlor must be unequivocal in their declaration and should communicate the terms of the trust to the beneficiaries. The following must be present: • there must be property capable of being subjected to a trust • the trust must meet the requirements for formal validity • the terms of the trust must be sufficiently certain (essential validity) • the purpose of the trust must not be unlawful Evidential requirements—personalty Provided the conditions for the essential validity of the trust are fulfilled, a declaration of trust in respect of personalty (other than an equitable interest) may be declared: • in writing • orally or • (in exceptional cases) by conduct There are no legal requirements as to the form of a declaration of trust of personalty. However, it is good practice...

View the related precedents about Rule against perpetuities

SIP trust deed

SIP trust deed FORTHCOMING CHANGE: Following its announcement as part of the Spring Budget on 15 March 2023, HMRC published a call for evidence on how to improve and simplify non-discretionary tax-advantaged Save As You Earn (SAYE) and Share Incentive Plan (SIP) schemes on 5 June 2023. The call for evidence focused on the effectiveness and suitability of SAYE and SIP, participation levels in the schemes, their flexibility and ease of operation and administration, whether the schemes are appropriately targeted to incentivise share ownership amongst those on lower incomes, and how other performance incentives compare to SAYE and SIP. The call for evidence closed on 25 August 2023, and the government’s response is awaited. For further details, see: Share Incentives weekly highlights—8 June 2023. [insert name of company] Trust deed [insert name of company] Share Incentive Plan This Deed is made on BETWEEN 1 [INSERT NAME OF COMPANY], a company registered in England and Wales under number [insert company number] (the Company) whose registered office...

View the related q&as about Rule against perpetuities

Do you need to specify a long-stop date for an option to be valid?

Do you need to specify a long-stop date for an option to be valid? The Perpetuities and Accumulations Act 2009 (PAA 2009) disapplied the rule against perpetuities for options and so options granted after 6 April 2010 need not specify a long-stop date. Prior to PAA 2009, a call option would be void if not exercised within 21 years. Nonetheless, in the case of a call option, a seller should note that the property may be sterilised for the duration of the option period. The buyer will often seek a

If an overage provision within a deed executed in 1985 does not contain an overage period, is it still enforceable/valid?

If an overage provision within a deed executed in 1985 does not contain an overage period, is it still enforceable/valid? The Perpetuities and Accumulations Act 2009 reformed and simplified the law on perpetuities. However, a deed executed pre 2010 falls to comply with the old rules under the Perpetuities and Accumulations Act 1964 (PAA 1964), with the 'wait and see' rule (detailed below) being particularly relevant. Rule against perpetuities—instruments taking effect before 6 April 2010 It is likely that the rule against perpetuities will apply to most overage deeds executed before 6 April 2010. Where the perpetuity period was not defined, the period under the common law rule was the length of a life or lives in being plus 21 years. The lives had to be in being at the time of the disposition creating the settlement and it was common to select a ‘royal lives’ clause. This common law rule was modified, by the PAA 1964, in the case of dispositions made on or after 16...

View the related News about Rule against perpetuities

Property Disputes weekly highlights—12 September 2024

This week's edition of Property Disputes weekly highlights includes: the introduction of the Renters’ Rights Bill, a Court of Appeal decision on an application to set aside an order staying possession of property, High Court cases on relief from forfeiture for breach of a ‘permitted use’ clause, an application for proceeds of sale of properties, and on property held on a constructive trust, and an Upper Tribunal decision on whether a premises formed a single hereditament.

Private Client weekly highlights—1 August 2024

This week’s edition of Private Client highlights includes: (1) draft legislation for Finance Bill 2025 and policy papers published, including revised proposals on changes to the taxation of non-UK domiciled individuals and summer engagement plans to seek feedback from industry bodies and other stakeholders; (2) Autumn Budget date announced for 30 October 2024; (3) Assisted Dying for Terminally Ill Adults Bill introduced in the House of Lords; (3) guarantee of loan to discretionary trust secured by charge over trust assets not a lifetime transfer of value by settlor (Carvajal v HMRC); (4) protection for personal representatives in potentially insolvent estates (Wedgwood v Hosein); (5) Cayman Islands introduces major change to perpetuities rule; and (6) France restricts access to beneficial ownership registry.