Residential contracts

A contract for the sale of land, or of any interest in land, is void unless it complies with section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989). It must:

•
be in writing
•
contain or incorporate all of the terms expressly agreed by the parties, and
•
be signed by or on behalf of the parties (either by way of a single document signed by all the parties or separate documents each signed by one or more parties)

A contract becomes effective when the last party signs, so the practice of exchanging identical contracts in counterpart has been created to control when the contract comes into force. This is usually carried out in accordance with the Law Society’s Formulae for exchanging contracts by telephone.

If a contract is varied after exchange, the variation must be in a document that itself complies with LP(MP)A 1989, s 2.

For further guidance, see Practice Note: Contracts for the sale of land—formation, signature and variation.

Standard Conditions of Sale

Residential contracts are generally formed by incorporating standard conditions of sale.

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Property News

Snapshot of key property developments to look out for in 2025

Property analysis: This analysis provides a snapshot of some of the key property developments to look out for in 2025.

MHCLG publishes letters on revised NPPF reforms

The Ministry of Housing, Communities and Local Government (MHCLG) has published letters from the Deputy Prime Minister, Angela Rayner, to housing industry stakeholders, dated 13 December 2024, and to local authority leaders, mayors, and chief executives of local authorities, dated 12 December 2024. These letters outline key reforms to the National Planning Policy Framework (NPPF), including a new standard method for assessing housing needs, increasing the national target to 370,000 homes annually, and modernising the green belt policy, among other reforms. The letters also address the increase in planning fees to enhance local planning authority (LPA) resources. In addition, the MHCLG has published a letter from the Minister of State for Housing and Planning, Matthew Pennycook, to the President of the Royal Town Planning Institute (RTPI), Lindsey Richards, dated 12 December 2024. This letter highlights the critical role of professional planners in addressing the housing crisis and details funding commitments to support the capacity and capability of LPAs, including £14.8m in immediate grant funding and £49m for planning reform implementation in 2025/26.

CIEEM publishes report on BNG for small sites

The Chartered Institute of Ecology and Environmental Management (CIEEM) has published a report, detailing the findings of a recent survey on Biodiversity Net Gain (BNG) for small sites in England. The survey, which received responses from over 250 participants, reveals significant concerns regarding the implementation of mandatory BNG for small sites, eight months after its introduction. In response, the CIEEM has proposed several key reforms, including reviewing the de minimis threshold, introducing a simplified biodiversity tariff system as an optional alternative to offsite credits, modifying the metric for low distinctiveness habitats, improving the use of pre-occupation planning conditions and post-development auditing, and developing local habitat banks offering small-sized biodiversity units, among other recommendations. The CIEEM is also committed to collaborating with the Department for Environment, Food and Rural Affairs and Natural England to refine and improve the BNG approach.