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I am an executor and in the process of selling the deceased’s property. Will I still be able to complete the sale and what if someone in the chain is unable to do so?

The Government published guidelines on 23 March 2020 concerning house sales.

Estate Agents have been required to close their offices and although staff are allowed to work from home they must not attend properties for any reason.

Therefore, if the property has not yet been put onto the market you will be unable to obtain a proper valuation at present. Also, restrictions on movement means that people must not view properties in person. Therefore you ought to delay marketing.

If you have found a buyer and the property is empty then the transaction can go ahead but you may experience delays in the transaction. For example, if your buyer needs a mortgage there will be a delay in getting a mortgage offer and even if it’s a cash purchase there are likely to be delays with Local Authority Searches.

You should discuss with your conveyancer whether to include special contract conditions. These could take into account what happens if the buyer or someone in the chain falls ill between exchange and completion and cannot move on the anticipated completion date.

If you have exchanged contracts the Government guidelines indicate that the sale of an empty property can go ahead to completion. However, if the contents of the property have not been removed you may have difficulty getting it cleared. Similarly, your buyer or someone else in the conveyancing chain may find that their removers are unable to move them. If this happens, you ought to discuss this with your conveyancer and your buyer as soon as possible to see if completion can be delayed to a later date.

Related FAQs

What is the Clinical Negligence Scheme for Coronavirus?

The Government has recently passed the Coronavirus Act 2020 in a response to the challenges posed by the pandemic, especially in relation to those facing the NHS during this time of crisis.  NHS Resolution worked closely with the Department for Health and Social Care to draft a clause within the Coronavirus Act providing indemnity for clinical negligence for any coronavirus related activity not currently covered by an existing arrangement.  In order to implement this clause, NHS Resolution has launched the Clinical Negligence Scheme for Coronavirus (“CNSC”).

It is intended that the CNSC will cover new contracts put in place for healthcare arrangements to respond to coronavirus, such as organisations supporting testing arrangements or Independent Contractors making agreements with NHS England and NHS Improvement to release capacity to the NHS.  Membership is not required for this scheme and the contracts entered into will automatically provide indemnity under the scheme.

The CNSC will not replace existing indemnity provisions made under the Clinical Negligence Scheme for Trusts (“CNST”) and it has been confirmed that the new Nightingale Hospitals will be covered by CNST rather than CNSC.  Similarly, NHS Resolution have confirmed that those doctors and nurses returning to practice from retirement, or those joining as students will be covered by the CNST or, where applicable the Clinical Negligence Scheme for General Practice (“CNSGP”).  The CNSC will not cover returning midwives to the profession, but the Royal College of Midwives have confirmed that they will extend all of the benefits of membership including Medical Malpractice Insurance to returning retired midwives.

For more information regarding this please click here.

OPPORTUNITY: Funding towards legal advice for North East SMEs

We have teamed up with Scaleup North East to help companies impacted by the coronavirus outbreak plan how to get back to business.

Our specialist lawyers will provide a free “diagnostic” call with eligible businesses across the NE, exploring challenges they are facing in the aftermath of the lockdown, and identify specific steps to survive, and then thrive, in these challenging times and beyond.

Through the collaboration with Scaleup North East, eligible North East-based SMEs are then able to apply for up to 40% funding towards up to £4,000 of legal advice.

These might include:

  • Employment issues, such as dealing with a phased return to work
  • Measures to support cash-flow, such as amendment to terms of trading and debt collection procedures
  • Renegotiations and amendments to contracts, and other advice about contracts with suppliers and customers to deal with consequences of Covid-19
  • Managing property costs – review of leases, advice on break clauses and formalisation of any revised arrangements recently put in place with landlords/tenants
  • Health and safety implications of return to work and social distancing

Find out more on our website or contact partner Damien Charlton.  If you are not eligible because of location but are interested in the free “diagnostic”, please contact us.

Can house builders, solicitors, banks and estate agents still operate?

Yes. The Government continues to support the construction industry and the Prime Minister’s recent statement supports the return to work of those who cannot work from home, if they can work safely.  This has seen an immediate surge in industry workforce returning to work. Banks and storage and distribution businesses are permitted to operate as essential businesses.

Solicitors and estate agents may still not permit members of the public to enter their premises, but can operate remotely via website, phone, email and other methods, as normal.  The Government’s latest guidance published on 13 May now advises that moving house need not be postponed, provided social distancing and safe ways of working can be adopted. Restrictions remain for those who are infected or who are self-isolating or vulnerable, and they should not move house or accept visitors.

 

Can I get contracts signed electronically if signatories are working remotely?

With the outbreak of coronavirus leading to a requirement for more employees to be working remotely, especially following Government advice that all non-essential travel including to and from work should be avoided, there has been an increased requirement for businesses to be more flexible in their approach to signing contracts.

The traditional approach has been for contracts to be printed and signed with a “wet ink” signature. However, this is not a strict legal requirement in the majority of circumstances and contracts can be formed without this degree of formality. English law recognises that contracts can be formed by electronic means – including the exchange of emails or the typing of a name into a document to signify agreement to it.

Whilst this approach offers a lot of flexibility, more sophisticated electronic signature tools are recommended for important documents, to enable the identity of the signatory to be validated and reduce the possibility of fraud.

If businesses are considering changing their contracting processes because of coronavirus, or because of a general shift towards paperless working, it is important to ensure that proper approval processes remain in place, and to consider whether a software tool should be used to complement them. Systems such as DocuSign are widely used.

There also remain some situations where legal advice is recommended before relying on an electronic signature:

  • Where the other party is abroad – as local laws that are different from English law might apply
  • If executing a deed – the law requires certain types of document to be executed as a deed (for example, transfers of land and powers of attorney), and the issues around electronic signature and witnessing are more complicated here
I work in construction. Should construction sites continue to operate?

The formal Government position relating to construction sites is that construction work should continue on site if it can be conducted safely, and the Business Secretary, Alok Sharma, has written an open letter to the UK Construction Industry thanking it for all its help in the current crisis. The letter also confirms the Government’s current official policy of keeping construction sites open. The full text of the letter can be downloaded.

This also remains the formal position of the Construction Leadership Council (CLC) with the qualification that sites should operate in accordance with Public Health England instructions; without compromising health and safety; and in accordance with the Site Operating Procedures issued last week by the CLC.

In practice, many construction sites have been closed by national developers and house builders due to difficulties with staffing and supply chain, and practical issues with compliance with the social distancing and site operating procedures.

The Scottish Government has recently issued guidance that all non-essential construction sites, which includes housing, office, leisure, schools and retail sites, must close to reduce the risk of the spread of Covid-19.