Draft Contract

In order for a contract to be valid there must be the usual offer and acceptance, consideration, certainty of terms, capacity and an intention to create legal relations. The formalities of which are laid down in S2 Law of Property (Miscellaneous Provisions) Act 1989:

1. the contract must be in writing
2. It must incorporate all terms agreed between parties and signed by each party.

A solicitor may only sign a contract on behalf of a client if he has obtained express authority from the client to sign in writing (unless a power of attorney has already been obtained).

The conveyancer must identify who has a right to sell and whether any additional trustees need to be appointed. In the case of co-owners they will always be treated as joint tenants. Which means that on death of a co-owner the legal estate shall pass to the surviving owner under the doctrine of survivorship. It is important with co-owners to identify the nature of their tenancy. Are they Joint Tenants or Tenants in Common.

One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies. When a property is owned by joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owners. Tenants in common have no rights of survivorship. Unless the deceased individual's will or other instrument specifies that his or her interest in the property is to be divided among the surviving owners, a deceased tenant in common's interest belongs to the estate.

The most common form of a written contract is incorporated with the Standard Conditions of Sale. Traditionally a formal contract is compromised of two parts:

• the particulars of sale - these provide a legal and physical description of the property and may include incumbrances.
• the conditions of sale - the terms on which the property is being sold and can be the subject of negotiation between the parties. These usually include the standard conditions and any Special Conditions agreed between the parties.

The date on the contract is only filled in at exchange stage and unless a provision is made on the front of the contract for completion the SC6.1.1 provides for completion to be the 20th working day after exchange of contracts. Although in practice the parties will agree a date upon exchange of contracts.