City solicitors publish new precedent document for real estate finance solicitors’ undertakings

The City of London Law Society has published the first standard form letter covering a borrower’s solicitors’ undertakings to a security agent, specifically in relation to the completion of a real estate finance.

The letter, created by the CLLS’ Land Law Committee, is the first undertakings precedent of its kind, providing City law firms and real estate practitioners with a practical, standardised form that includes options for all common completion and post completion actions the borrowers’ solicitors typically carry out in relation to the real estate provided as security for the financing.

The precedent covers matters such as registering at the Land Registry, submitting stamp duty land tax and land transaction tax returns, holding deeds to order, and giving notices to superior landlords in respect of the security created. It currently does not contain COVID-19 caveats for the undertakings, but these can be included by solicitors at the time of completion, if necessary.

The precedent is readily available on the CLLS’s website for use by solicitors and other practitioners.

Chair of the CLLS Land Law Committee, Jackie Newstead, said:

“This new precedent document will help to streamline the financing process and provides City law firms with a flexible document which standardises undertakings for real estate finance deals. We hope this will be a useful resource, which can be amended as required to suit the requirements of individual real estate transactions.”

Kindly shared by City of London Law Society

Main article photo courtesy of Pixabay