Glossary definition
SPA (Sale and Purchase Agreement)
A legally binding contract setting out the terms on which a property or site is to be sold and purchased, including the price, completion date, and any conditions. In development transactions, SPAs often include conditions precedent such as the grant of satisfactory planning permission or the availability of funding.
Definition
A legally binding contract setting out the terms on which a property or site is to be sold and purchased, including the price, completion date, and any conditions. In development transactions, SPAs often include conditions precedent such as the grant of satisfactory planning permission or the availability of funding. Forward-sale SPAs, where completed units are pre-sold to a housing association or investor, can significantly strengthen a development finance application.
See also
Closely related terms.
Condition Precedent
A requirement that must be satisfied before a lender is obliged to make funds available under a facility agreement, often abbreviated to CP.
Title Deed
A legal document that proves ownership of a property or parcel of land, now predominantly held in electronic form at HM Land Registry.
Vacant Possession
The delivery of a property free from any occupiers, tenancies, or licences, giving the buyer or developer unimpeded physical and legal possession.
Facility Agreement
The legal contract between a borrower and a lender that sets out all terms and conditions of the loan including the facility amount, interest rate, drawdown mechanics, repayment terms, covenants, and events of default.
Further reading
Guides that touch this term.
Guide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readReadGuide
Development Finance Application Checklist: Documents You Need
A comprehensive checklist covering every document lenders require for a development finance application, from development appraisals to contractor tenders and planning evidence.
11 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readRead
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