Contract for sale

Equity to the rescue in contract for sale case

  • PP 2019/99
Once upon a time, buyers could avoid, or defer, paying stamp duty by “resting on contract”. In other words, buyers would pay the full purchase price for a property but relied on their rights under the contract for sale, rather than accepting a transfer and registering it at the Land Registry. The litigation in Re Charlotte Street Properties Ltd (in administration) [2019] EWHC 1772 (Ch); [2019] PLSCS 128 concerned six investment properties in Manchester worth £1.6m. The landowner had contracted to sell them to a company (NEL), which he managed and controlled. The agreement provided that completion would take place
Practice point