Transfers of Part and More Complex Transactions

Not all property transactions are as simple as buying or selling a single property as a whole. There are many situations where a transaction involves the sale or purchase of only part of a property or land, or where the legal and practical considerations are far more complex than a standard sale or purchase. These scenarios require careful planning and the guidance of experienced property solicitors to ensure that everything is handled correctly and all future issues are anticipated and managed.

What is a Transfer of Part?

A “transfer of part” arises when an owner wishes to sell or transfer only part of a registered title, rather than the entire area included in their Land Registry title. This is common when:

• A large commercial site is divided into smaller units for sale or lease.
• A landowner sells part of their land for development but wishes to retain another section.
• Businesses or investors wish to restructure ownership of a larger estate by dividing it between several parties.

In these situations, the property being transferred must be precisely defined. Detailed plans need to be drafted showing the exact boundaries of the part being transferred, in compliance with Land Registry requirements. If the property is not yet registered, it may also require first registration as part of the transaction.

Why Legal Advice is Essential in a Transfer of Part

Transfers of part and complex property transactions involve far more legal considerations than a standard transaction. Getting the legal structure right from the outset is essential to avoid future disputes or problems with the use, development, or sale of the land.

For example, careful consideration must be given to the rights that will be granted or reserved between the land being transferred and the land being retained. These might include rights of way, rights for services (such as drainage, water, gas, or electricity), and rights to use shared access roads or facilities.

Similarly, it may be necessary to impose positive or restrictive covenants. These are legally binding conditions on how the land can be used, such as restrictions on certain types of development or obligations to contribute to the maintenance of shared areas.

Where part of a building is being transferred, there are even greater complexities, including service agreements, structural support, and repair obligations. Without clear legal agreements in place, disputes can arise over responsibility for maintenance or use of shared spaces.

Complex Transactions Beyond Transfers of Part

Some commercial property deals involve intricate structures or multiple parties, such as:

• Option agreements or conditional contracts, where the transfer depends on planning permission or other factors being met.
• Overage agreements, where the seller retains a right to share in future increases in land value.
• Development agreements, where land is sold or leased subject to obligations on the buyer or developer to carry out works.
• Leasehold structures, where multiple leases are granted out of one freehold title.

Each of these arrangements requires bespoke documentation and negotiation to ensure that the rights, obligations, and liabilities of all parties are clear and enforceable.

Planning for the Future

When part of a registered title is sold or transferred, it is important to think about how the land will be used and developed in the future. For example, will both parties have access to essential services? Are there potential planning or development issues that need to be considered? Are there any environmental issues, easements, or existing restrictions on the title that could affect the transaction?

At AFG Law, our commercial property team can assist with every stage of the process, from advising on the structure of the transaction and negotiating terms, to preparing and reviewing the necessary legal documents. We also work closely with surveyors and other professionals to ensure that plans and boundaries are accurate and meet Land Registry requirements.

Our solicitors understand that each property transaction is unique. We take the time to fully understand your business objectives and the specific requirements of your deal. Whether you are dividing a large commercial site, transferring part of a registered title, or entering into a more complex development agreement, we can provide tailored advice and practical solutions to protect your interests.

We pride ourselves on our attention to detail, proactive approach, and ability to resolve issues before they become problems. With extensive experience in transfers of part, rights and covenants, and complex commercial property structures, we ensure that your transaction is handled smoothly from start to finish.

Contact Our Team

If you are considering selling or transferring part of a registered title, or are involved in a complex commercial property transaction, our team of expert solicitors is here to help. We will guide you through the process and ensure that your interests are fully protected.

Contact our commercial property team at commercialpropertyenquiries@afglaw.co.uk or call us on 0161 515 2577 to find out more.