Maintenance covenant meaning

What is a positive covenant? A covenant operates as a contractual promise. Common examples of positive covenants found in land transfers impose duties to: carry out repairs or upkeep (for example, access ways), or contribute towards repair and maintenance expenses incurred by another put up buildings or boundary fencing (for example, on a transfer of part) pay additional sums (i.e. overage) where, for instance, planning permission is obtained, or on a sale following development of the land What is the issue with positive covenants? At common law, it is firmly settled that the burden of a positive covenant affecting freehold land does not pass with the estate. Accordingly, if one party to a freehold transfer (Party B) gives a positive covenant in favour of the other (Party A), that obligation will not bind Party B's successors in title, despite section 79 of the Law of Property Act 1925...

This checklist supports a buyer’s solicitor in conducting an early read-through of the first draft of a contract for the purchase of commercial property issued by the seller, spotlighting the headline matters to verify. At times, the seller’s solicitor may prepare the agreement without fully grasping every point that must be addressed; accordingly, the buyer should stay alert to any omissions from the outset and raise probable issues or contractual needs at the earliest opportunity (even if only noted as a placeholder in the document while awaiting instructions or further detail). Identification of seller and buyer Heads of terms may not capture the parties precisely: Companies House: where the seller is a company, the buyer’s solicitor must confirm via Companies House that the named party and company number in the heads of terms are correct and match the details shown in the title documents. If the seller is an overseas company, a partnership or another entity, the buyer should immediately seek an opinion letter...

This glossary sets out many of the expressions commonly used in the leveraged finance market. Words appearing in the definitions in bold are defined elsewhere in this glossary. For further banking terminology, please refer to the main Banking & Finance Glossary... Acquisition finance glossary—A Acceleration Acceleration is the formal action taken by the agent, on the instructions of the majority lenders, following an event of default, such as making a demand for early repayment of the loan. See Practice Note: Accelerating a loan for more information... Accordion feature/accordion facility An accordion, also called an incremental debt feature, is a mechanism in the facilities agreement that, provided specified conditions are satisfied (for example, pro forma compliance with a leverage test), permits those lenders under the facilities agreement who wish to do so to advance additional debt. The terms for that extra debt are typically captured in an increase notice. This accordion or incremental debt flexibility is different from structural adjustment, which usually requires the majority consent...

Many of the standard covenants found in a conventional syndicated loan facility will likewise apply to a real estate finance investment transaction. For guidance on those provisions, including an explanation of what covenants are and the reasons they are employed, see Practice Note: Covenants; that resource explains their purpose and operation. This Practice Note focuses on the particular covenants that are commonly seen in a real estate finance investment transaction, and it concentrates on investment deals in the property finance sphere. Additional covenants must be observed in real estate finance development facilities, and compliance with these additional undertakings is required. These arise because the property financed will be developed during the term of the facility agreement, over the whole duration agreed between the parties. For further detail, see Practice Note: Real estate finance—covenants in development facilities for a fuller discussion. Purpose of covenants Covenants (or undertakings) impose positive and negative obligations on the borrower to be complied with throughout the loan; unlike representations, undertakings remain continuously in force...

DATE [ date ] Parties [ name of First Owner ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] ( First Owner ) [ name of Second Owner ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] ( Second Owner ) [ [ name of First Owner’s Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] ( First Owner’s Mortgagee ) ] [ [ name of Second Owner’s Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] ( Second Owner’s Mortgagee ) ] 1 Definitions For this Deed, the terms below shall have these meanings: ...

HM Land Registry Prescribed Clauses LR1. Lease date [ date ] LR2. Title number(s) LR2.1 Landlord’s title number(s) [ number ] and [ number ] LR2.2 Other title numbers [ existing title number(s) for entries of matters mentioned in LR9, LR10, LR11 and LR13 ] LR3. Parties to this lease Landlord [ OPTION 1—name of Landlord (not an overseas entity) ] [ of OR incorporated in England and Wales (company registration number [ number ]) with registered office at [ address ] [ OPTION 2—name of Landlord (overseas entity) ] [ incorporated OR formed in [ territory of incorporation/formation ] (registration number [ number ]) [ and recorded at Companies House (company registration number BR[ number ]) ] (overseas entity ID [ [ number ] OR not required OR ) with registered office at [ address ]...

date [ date ] Parties [ name of Grantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Grantor) [ name of Grantee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Grantee) [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] ( [ address ] (Mortgagee) ] 1 Definitions Within this Deed, the terms below shall have the meanings set out: Dominant Land • the [ freehold OR leasehold OR land known as [ description ] [ registered at HM Land Registry under title number [ number ] ] [ and shown [ edged OR coloured OR hatched ] [ colour ] on the Plan ]; Legislation •...