Buildings insurance meaning

Repair under the common law Under the common law, a landlord, relative to a tenant, bears notably heavy duties regarding upkeep and repair of the leased premises, see Practice Note: Repair clauses in commercial leases in Scotland—Repair under the common law. Within commercial leasing, landlords will almost invariably aim to exclude all such common law repairing liabilities for the demised premises, though not for common areas in multi-let buildings; see Practice Note: Service charge and outgoing provisions in commercial leases in Scotland. Consequently, tenants usually shoulder substantial repair commitments. The prevalent model is the full repairing and insuring (FRI) lease, under which the tenant assumes responsibility for repairs of every kind save for damage arising from insured risks; see Practice Note: Repair clauses in commercial leases in Scotland—Contracting out of the common law—the full repairing and insuring (FRI) Lease and The modern commercial lease: Stair Memorial Encyclopaedia [466]...

Scrutiny of construction documentation is typically pertinent to assets constructed within 12 years of the purchase date, or, for older properties, where works have been undertaken in the preceding 12-year period; however, treat this timeframe as a practical minimum only, since extended limitation periods for certain building safety-related claims may warrant a broader review for property that is, or includes, residential accommodation. See Practice Note: The construction due diligence process. This Checklist sets out the principal points that must be considered following receipt of the construction documents in relation to the property concerned. The papers should be reviewed at the outset and these key issues evaluated before putting any pre-contract enquiries to the seller. For an example of a list of pre-contract enquiries, see: Construction pre-contract enquiries-checklist. Documents (1) Confirm that a complete suite of construction documents relating to the property's construction and/or to works completed in the last 12 years, or any longer period as appropriate, has been provided and properly...

Does a seller need to disclose land contamination to a buyer? If the seller knows the land is contaminated, there is no obligation to reveal this to a purchaser; the principle of ‘buyer beware’ applies. However, when responding to CPSE enquiries, the seller must avoid any misleading statements. 16.4 Please provide (so far as the Seller is aware) details of: (a) historic and current uses of the Property and activities undertaken there; and (b) whether any hazardous substances, or contaminative or potentially contaminative materials, are in, on or beneath the Property, including asbestos or asbestos-containing materials, any known waste deposits, present or former storage areas for hazardous or radioactive substances, existing or previous storage tanks (above or below ground), and any parts of the Property that are or were landfill. A seller will typically seek the benefit of the ‘sold with information’ statutory exclusion and authorise the buyer to carry out its own site investigations. A typical response would be: ‘the buyer may undertake its own investigations...

In this issue: Property management Investigating title Environment, energy and buildings Residential property Statutory compliance Property in Scotland Property in Wales Transferring property Property insolvency Property taxes Additional property updates this week Daily and weekly news alerts Trackers New Q&As Property management Second edition of RICS service charge standard The Royal Institution of Chartered Surveyors (RICS) has released the second edition of its professional standard on service charges in commercial property. Compulsory for all RICS-accredited practitioners and aimed at UK property managers and occupiers, it seeks to lift standards and foster greater transparency, fairness and consistency in service charge management and administration. The revision addresses key challenges, including issuing budgets and year-end certificates promptly, works to reduce causes of disputes between landlords and tenants, and offers clearer guidance on resolving disagreements. It also aids the negotiation, drafting, interpretation and operation of leases, ensuring alignment with recognised industry best practice....

In this issue: Adjudication Building safety Environmental issues Litigation Construction industry news Daily and weekly news alerts New and updated content Construction trackers Adjudication Costs penalty for adjudication enforcement claimant withholding financial information pre-action (Complete Ceiling and Partitioning Systems Ltd v DE1 Ltd) In Complete Ceiling and Partitioning Systems Ltd v DE1 Ltd [2024] EWHC 2800 (TCC), the TCC declined to grant the successful claimant its enforcement costs, owing to a failure to supply, before action, material that would have reassured the defendant about solvency concerns and dispelled its understandable doubts. Authored by James Malam, barrister at Exchange Chambers. See News Analysis: Costs penalty for adjudication enforcement claimant withholding financial information pre-action (Complete Ceiling and Partitioning Systems Ltd v DE1 Ltd). Building safety Welsh Government announces updates to building safety reforms The Welsh Government has set out updates to building safety reforms in Wales, highlighting continued progress to improve the...

In this issue: Building Safety Adjudication Litigation Collateral Warranties Construction industry news Daily and weekly news alerts New and updated content Construction trackers Building Safety Building Safety Act 2022 (Remediation contribution orders) ‘just and equitable’ test (Triathlon Homes LLP v Stratford Village Development Partnership and others) In Triathlon Homes LLP v Stratford Village Development Partnership and others [2024] UKFTT 26 (PC), the First-tier Tribunal (FTT) offered guidance on how the ‘just and equitable’ test should be applied to Remediation Contribution Orders under BSA 2022, s 124. Authored by Andrew Butler KC, barrister at Tanfield Chambers, London. See News Analysis: Building Safety Act 2022 (Remediation contribution orders) ‘just and equitable’ test (Triathlon Homes LLP v Stratford Village Development Partnership and others). HSE publishes BSR register of higher-risk buildings The HSE has released details from the BSR’s register of high-rise residential buildings in England. Under the BSA 2022, such high-rise residential buildings are termed ‘higher-risk...

This Practice Note outlines the principal considerations when preparing contracts for schemes falling within the Building Safety Act 2022 (BSA 2022), and in particular the regime for ‘higher-risk’ buildings. It addresses a range of matters including the lengthened time limits for pursuing claims under the Defective Premises Act 1972 (DPA 1972), the extra regulatory oversight introduced for the pre-construction and construction phases and at completion, and the obligations imposed on ‘dutyholders’ under both BSA 2022 and related secondary legislation, as well as more generally under the Building Regulations 2010, as amended. Drafting points to consider where the employer is a member of the Responsible Actors Scheme are also covered. For a fuller summary of BSA 2022, see Practice Note: Building Safety Act 2022—key provisions and issues, and for guidance on which categories of buildings fall within the ‘Higher-Risk building’ regime, see Practice Note: Building Safety Act 2022—what is a higher-risk building? Limitation Periods BSA 2022 lengthened the window for commencing claims under DPA 1972, s 1(1), and under...

Who insures? Joint insurance From a tenant’s standpoint, the preferred arrangement is for the premises to be insured in the joint names of the landlord and the tenant. For the tenant, the key advantages are: both parties are alerted before the policy comes up for renewal or lapses any insurance proceeds are payable jointly to landlord and tenant, giving the tenant influence over how the funds are applied (and therefore over the reinstatement of the premises) there are no detrimental effects if the landlord enters liquidation before reinstatement is carried out the insurers cannot rely on their right of ‘subrogation’ (see Subrogation below) against the tenant for damage the tenant caused or contributed to Nevertheless, in many cases arranging insurance in joint names will not be practical...

Agricultural Holdings Act 1986 Where a tenancy is regulated by the Agricultural Holdings Act 1986 (AHA 1986), the respective responsibilities of landlord and tenant for the repair, maintenance and insurance of ‘fixed equipment’ (which includes buildings) are determined as follows: in line with the express provisions of the tenancy agreement; or if and to the extent the agreement is silent, by reference to the statutory ‘model clauses’ contained in: with effect from 1 October 2015 for property in England, the Agriculture (Model Clauses for Fixed Equipment) (England) Regulations 2015, SI 2015/950 (AMCFEER 2015) with effect from 1 November 2019 for property in Wales, the Agriculture (Model Clauses for Fixed Equipment) (Wales) Regulations 2019, SI 2019/1279 (AMCFEWR 2019) In each jurisdiction, those instruments replaced, from their respective commencement dates, the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973, SI 1973/1473 (AMRIFER 1973). In practice, written tenancy agreements commonly and expressly adopt the...

1 Definitions Within this Agreement, certain expressions carry specific meanings. Illustrative terms include: AA 2020: the Agriculture Act 2020; ATA 1995: the Agricultural Tenancies Act 1995 Adjoining Property: Retained Land and nearby premises; Adjoining Property Rights: rights over the Holding benefiting such land Agreement: this instrument and any supplementary or collateral document Annual Rent: yearly sum payable from the Rent Commencement Date on Rent Days Authority: any statutory, public or local body, court, government department or duly authorised officers Conduits: media and equipment for carrying energy, data or substances Costs: losses, expenses, damages and liabilities Direct Payment: any BPS Payment or SFS Payment, as applicable Eligible Holding: parts of the Holding qualifying for a Rural Support Payment Forfeiture Event: designated insolvency processes, non-payment, or breach Genetically Modified Organisms: as defined by the Environmental Protection Act 1990, including modified or derived crops Holding: the identified property shown on the Plan Insured Risks: perils the Landlord...

Definitions Environment – any or all of the following media: (a) air, including air inside buildings or other structures and at levels below or above ground; (b) land, covering buildings and any other structures or erections upon, in or beneath it, together with soil and anything beneath the land's surface; and (c) water, including groundwater and surface water, plus any ecological systems or living organisms (humans included) sustained by those media. EHS Laws – all relevant legislation (whether civil, criminal or administrative), statutes, statutory instruments, directives, regulations, common law, codes of practice and guidance notes (having legal effect), and any instructions or decisions of any court or regulatory authority that concern EHS Matters. EHS Matters – any issues connected with the Environment, energy efficiency, climate change, or health and safety...

Definitions This Deed, between Lender and Borrower, defines key expressions used. Costs: all expenses on a full indemnity basis, including legal and professional fees. Event of Default: events in clauses 4.1.1–4.1.9. Financial Indebtedness: borrowing, bonds, finance leases, receivables financing, counter‑indemnities, and related guarantees. Insurance Policy: any current or future insurance benefiting the Borrower regarding the Real Property. Interest Rate: the stated annual rate or a closely comparable replacement if required. Legislation: UK laws and subordinate instruments, as amended, including approved codes of practice. Real Property: the assets in Schedule 1 together with buildings, fixtures and fixed plant. Receiver: any receiver (including a receiver and/or manager) appointed under this Deed or by law. Secured Obligations: all present and future liabilities to the Lender, including Costs and interest. Security Interest: any mortgage, charge, pledge, lien or similar arrangement conferring security. Security Period, VAT, Working Day: from today until full discharge; value added tax; any day except Saturday, Sunday...

See Practice Note: Negotiation guide—insurance clauses—commercial leases In Beacon Carpets v Kirby, the landlord had a duty to insure, yet could not secure planning consent needed for the reinstatement of the premises...