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.

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