Glossary definition
Sunset Clause
A contractual provision that sets a longstop date by which certain conditions must be fulfilled, failing which either party may terminate the agreement. In development transactions, sunset clauses are commonly found in forward-sale agreements and option contracts, requiring planning permission to be secured or construction to be completed by a specified date.
Definition
A contractual provision that sets a longstop date by which certain conditions must be fulfilled, failing which either party may terminate the agreement. In development transactions, sunset clauses are commonly found in forward-sale agreements and option contracts, requiring planning permission to be secured or construction to be completed by a specified date. Developers should negotiate realistic sunset dates that allow for planning delays and construction overruns.
See also
Closely related terms.
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.
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.
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.
Programme Delay
A delay to the planned construction programme that pushes back the expected completion date of a development project.
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
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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