Glossary definition
Vacant Possession
The delivery of a property free from any occupiers, tenancies, or licences, giving the buyer or developer unimpeded physical and legal possession. Vacant possession is usually a condition precedent to completion on development site acquisitions, as existing occupiers can delay or prevent a scheme from proceeding.
Definition
The delivery of a property free from any occupiers, tenancies, or licences, giving the buyer or developer unimpeded physical and legal possession. Vacant possession is usually a condition precedent to completion on development site acquisitions, as existing occupiers can delay or prevent a scheme from proceeding. Where sitting tenants or business occupiers are in place, the cost and timeline for obtaining vacant possession must be factored into the development appraisal.
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.
Site Acquisition
The process of purchasing a development site, including negotiation, due diligence, exchange of contracts, and completion.
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.
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
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 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 readRead
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