Overview

Nabarro’s September update for those working in the real estate sector.

Contents

• Utility Supplies – Deemed Contracts and CRC implications
• Rent guarantees – Heads of terms and negotiation issues
• Letters of Intent – Supreme Court holds that terms in an unsigned contract can be binding page 8
• Turnover Rent – The Pros and Cons and how to lessen the effect of the Cons
• Planning Reform Update – Abolition of Regional Strategies and the IPC

With a rise in the number of insolvent tenants and tenants vacating premises it is important for owners to minimise the costs of their portfolios and understand the extent of their liability to utility suppliers and any impact on their CRC supply so as to avoid being left with substantial charges. Property owners are often served with a claim from a utility supplier who has not been able to recover outstanding sums from a previous occupier.

The Office of Gas and Electricity Markets (Ofgem) issued a letter of guidance on 24 June 2010, “Statement of Deemed Contracts” which states gas and/or electricity would need to be consumed in order for a deemed contract to arise between a licensed supplier and the occupier/owner of the premises. This is however a general and non-binding view and the legal position will depend on the individual circumstances of each case.