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EFIS 48, April 2017 : Commercial Conditions - Law Society

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Because Oyez and the Law Society jointly own the intellectual property in SCPC, representatives from Oyez and the Law Society formed a Joint Working Party (JWP) to review the second edition of the Standard Commercial Property Conditions in the light of evolving practice and procedure in commercial property transactions as well as the effect of new legislation.

In particular, the JWP has amended the second edition of SCPC to include the following changes:-

1. The provisions for capital allowances and VAT have been updated. On VAT, the default position now is that the sale of a commercial property will constitute a taxable supply.

2. New Special Conditions have been created regarding chattels and fixtures where provision is no longer made for a part of the price to be apportioned to chattels.

3. Provision is now made for cases in which the seller is the landlord under a tenancy which is being continued under Part II of the Landlord and Tenant Act 1954 but issues such as an interim rent are unresolved at the date of the contract.

4. A new Special Condition replaces the former standard condition and specifies the parties' rights where the seller is retaining nearby land.

The JWP has also drafted a set of explanatory notes to accompany this new third edition of SCPC which also include a change to the current provision for VAT.

An explanatory article outlining the rationale for this new third edition of SCPC will be published in the Law Society's Gazette in April.

CON14F has also been updated to reflect a change in the numbering of the notice to complete under the new third edition of SCPC.

This amended version of CON14F should only be used in conjunction with the new third edition of SCPC and must not be used with the old second edition of SCPC.

The new third edition of SCPC, SCPC_Notes and the amended CON14F form should be used on and after 1st May.

Please also find CON291 which has received a slight textual amendment, and forms CON293 and CON294 which have been amended to include field labels.

For details of field amendments please go to:

Forms affected

SCPC1_2 Contract Incorporating the Standard Commercial Property Conditions (Third Edition) New/Amended
SCPC_Notes Explanatory Notes on The Standard Commercial Property Conditions (Third Edition) (published May, 2017) New/Amended
CON14F Notice to Complete under Condition 9 of the Standard Commercial Property Conditions - [NTC3C] [NTC4C] New/Amended
CON291 General Tenancy Enquiries (Residential and Business Tenancies) - [SUP29G] New/Amended
CON293 Enquiries before Contract for Sale of a Company New/Amended
CON294 Enquiries before Contract for Acquisition of an Unincorporated Business New/Amended

Crown copyright forms are reproduced with the permission of the Controller of the Stationery Office. Law Society forms are reproduced with the permission of the Law Society. Legal Aid Forms are produced with the permission of the LSC.