What is a Collateral Warranty?

Collateral warranties are duties of care owed by a building contractor and/or any member or company of the professional team (e.g. architects, surveyors, planning consultants, M&E consultants, contractors, civil engineers, project managers) to the developer/ landowner which are then passed onto a buyer, tenant, or lender.

Non-Payment of Rent

In times of recession, even with the best of intentions, tenants can find themselves in a position where rent cannot be met. Meanwhile, landlords are in no better a position, and may feel that their hands are tied and that they must take tough steps to remedy the situation.

Sale or Purchase of an Existing Business

Buying or selling a business is nearly always more complex in practice than it seems over an initial meeting. Good legal advice at an early stage is always necessary to avoid valuable time and money being lost, either because renegotiation is necessary later down the line, or even worse because a bad deal wasn’t recognised and walked away from near the outset.

Renewing a Commercial Lease

When a tenant engages in a new commercial lease, the temptation can be to get in and start trading as soon as possible, and while this is of course on its own a good idea, a commercial lease’s terms can hold legal time-bombs in the form of unpalatable rent review and / or break clause provisions that only become apparent years later.