From: "Transliteration" 
Newsgroups: uk.finance
Subject: Re: Property sale with restrictions
Date: Fri, 12 Nov 2004 02:15:59 +0000 (UTC)

This is a very curious problem.
In theory, you can place a restrictive covenant in a sale, and the covenant 
would be enforceable by 3rd parties.  This is very common say in leaseholds 
where all the leaseholders must abide to rules such as 'no rollerblading in 
the common parts' and these are enforceble.  However, in your case, there 
would still have to be a 3rd party with an interest in enforcing the 
covenant.  If the company sells the land, subject to restrictions, it could 
do so by selling only a lease, and then transfer the freehold to someone who 
would enforce the terms of the lease (the person who wants to prevent 
building on the residential site).
"Robin Graham"  wrote in message 
news:cn00p7$qu4$1@titan.btinternet.com...
> The landlord (a ltd company) of a commercial property wishes to sell it to
> the present tenant, who wants to buy it. But part of the land at one side 
> of
> the commercial building would make a good residential property site if 
> sold
> off separately. The landlord does not want this parcel of land to be
> developed and wishes to place some sort of restriction - in perpetuity -
> that this land cannot be developed, in case the new owner decides to 
> either
> sell it off separately or sell the whole lot to another owner who then 
> tries
> to sell the land off.
>
> Has anyone got any ideas that they might offer as to how a workable
> restriction might be arranged? One idea would be for the ltd co to retain
> ownership of the parcel and continue to lease it to the owner at the time 
> of
> the main bit in order to retain control, but this is not ideal because the
> ltd co would have to remain in existence for ever and does not 
> particularly
> want to. Another way might be to place a covenant in the terms of the sale
> prohibiting development, but some smart-ass always finds a way round this
> sort of thing.
>
> Thanks if you have any ideas.
>
> Rob Graham
>
>
>