It’s time to cut the crap out of the BTR legal process
If you’ve been involved in any kind of property contract, you might well be familiar with the frustrations of the residential market’s legal processes.
Whether it was a lease agreement, house purchase or BTR development sale, there is a reason for this. With the significant sums and watertight details associated with property sales, it pays to be precise and meticulous.
However, whatever your opinion on lawyers and legal departments, looking to simplify complicated systems is something everyone can agree with. And when it comes to legal processes, it doesn’t get much more complicated than whole development purchases.
Whether on the buyer or seller side of a development sale, we believe there are industry norms and attitudes that should be challenged and changed. From sellers issuing the contracts and the battle to get to exchange, there are readily-accepted aspects ripe for improvement. And with development finance often on the line, why not look to make things easier?
Simplifying contracts and speeding up milestones
We believe when buying developments, the time taken to get to exchange of contracts is far too long, and we believe this starts with where the contract typically comes from. Sellers employ lawyers to devise contracts which tend to be long winded and bespoke, regardless of the site’s actual requirements.
At Kooky we have streamlined the complete BTR legal process. According to James Caswell, our General Counsel. “We have spent time and resources putting together a fair sale contract, which is written in plain English, incorporates our key commercial needs, but gives the developer protection that we will perform under the sale contract. We issue our sale contract to the Developer at the earliest possible opportunity and we take time to explain the main points of the sale contract to the Developer before the lawyers get involved.”
Streamlining the legal process by asking questions
Caswell believes it’s not uncommon for lawyers to be seen as the ones who delay deals, but this is unfair. “Legal teams absolutely want deals and investment to happen, but maybe we need to be more pragmatic. To build this mentality into Kooky, we’ve developed a simple legal process based on quick exchanges and clear, set timescales.”
It’s not about ripping up the tried and tested steps or the law itself, but streamlining it. By looking at the bloated areas and unnecessary excess, we believe the legal processes for BTR development purchasess can be faster and simpler. Want to find out more? Speak to Nick Belkin, our Head of Acquisitions, on 0207 907 5555.