EDC Contracts and Risk

Legal structure, seller protection and what happens if it goes wrong

Exchange with delayed completion is a sophisticated legal transaction, and this book sets out its structure and risks with two repeated themes: protect your interest, and take proper advice. It explains that exchange binds while completion transfers, what you actually own after exchange and how EDC differs from an option. You will see the permissions the delay period can require, including protecting your interest at the Land Registry, the seller's existing mortgage, checking the seller and the title, and consent to occupy. The contracts chapter covers the sale contract, the deposit, the clauses that decide your risk and why each side needs its own solicitor. The book also covers insurance and your duties if tenants move in, and the stamp duty timing trap, with a worked example. It ends with a checklist and the consequences if you cannot complete, fail to protect your interest or trigger tax you did not plan for. Next in this series: “Using EDC to Build Fast”.

What’s inside

• The legal framework in plain English
• Permissions, licensing and planning
• The contracts, and what must be inside them
• Insurance, safety and your legal duties
• Tax treatment and choosing a structure
• Your compliance checklist
• Getting this wrong: what it actually costs

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.