Forward sales agreement/contract meaning

In this issue Free trade agreements WTO Customs LexTalk® International Trade: a Lexis®Nexis community Daily and weekly news alerts New and updated content Free trade agreements DBT announces new royalties for UK artists’ resales in Australia DBT has confirmed that, from 1 April 2024, UK creators will receive resale royalties in Australia under the UK–Australia Free Trade Agreement. Until now, UK artists did not obtain any payment when their works were resold there. Going forward, they can claim in line with Australia’s scheme—currently 5% of the sale price on commercial resales of AUS$1,000 or more—each time works such as paintings, sculptures, prints or photographs are traded within Australia’s professional art market. In 2021, UK artists exported £10m of goods to Australia, while Australia’s art market generated over AUS$140 million in sales in 2023. Additionally, from 1 April 2024, artist’s resale right royalties in the UK will be calculated in pounds rather than euros to better reflect the...

In this issue: Key developments and horizon scanning Service charges Disputes and remedies Repairing obligations and dilapidations Residential tenancies Property Disputes in Scotland LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts Dates for your diary New and updated content Trackers Latest Q&As Key developments and horizon scanning The Law Society has welcomed newly tabled amendments to the Leasehold and Freehold Reform Bill designed to limit sales of new leasehold houses and to ensure that, save in exceptional cases, every new home in England and Wales starts life as freehold. However, its President, Nick Emmerson, observed that, with no current measures to advance commonhold tenure, the Society endorses the Law Commission’s 2011 recommendations to modernise freehold law, making it simpler for houses on managed estates to be sold as freehold, and he urged the government to incorporate those reforms into the Bill. Emmerson also highlighted the...

1 Introduction 1.1 This guidance note sits alongside the following Lexis+® UK precedent development agreements: Agreement for lease—developer landlord to carry out major works Property development agreement (also commonly called a ‘building agreement’) Forward funding agreement 1.2 Sections 1–31 set out general matters for all development agreements. Sections 32–34 cover points specific to the Precedents: Property development agreement, Agreement for lease—developer landlord to carry out major works, and Forward funding agreement. 2 Terminology 2.1 In this note, the following terms apply: Developer The party who constructs, redevelops or refurbishes a building to realise a profit, usually by disposing of the completed scheme (with or without tenants) or, less often, by holding the asset and letting it to one or more tenants (the latter being uncommon, as most developers do not operate as commercial landlords). In building contracts, this party is often styled the ‘Employer’, as the Developer appoints the Contractor (defined below) to deliver the...

This Practice Note addresses the VAT considerations that arise in commercial development projects. It first outlines a simple, uncontentious scenario, then explores: when and whether the developer should opt to tax input tax recovery and circumstances in which that option could be disapplied whether a sale to an investor qualifies as a transfer of a going concern (TOGC) alternative development structures, such as forward funding and forward sales planning obligations and other payments towards local infrastructure tenant incentives disposals of surplus land and incomplete schemes, and rights to light For VAT issues in residential developments, see Practice Note: Residential development—VAT issues. Basic scenario There can be a variety of VAT considerations with commercial schemes, yet in practice most projects do not create major difficulties. It is helpful to begin with a clear, uneventful example involving a speculative development. In this situation, the developer identifies an opportunity and opts to tax at that point, intending to...

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...