Overview

A new law, taking effect in the UK in April 2011, will for the first time apply the full force of competition law to restrictive covenants and clauses in UK property contracts – including shopping mall leases and property sales.

Covenants and clauses which breach the rules will be void and unenforceable, and the parties may face other sanctions too. The new rules will apply to existing contracts which were signed before April 2011, as well as to new contracts.

The new rules will affect landlords, tenants, vendors, purchasers, property developers, property investors and property financiers. Not every restrictive covenant will be prohibited – but they will all need to be assessed by the parties and their advisers.

This Norton Rose briefing explains the practical implications of the new rules, and the steps which businesses can take to minimise risk.

To read more, click 'View Briefing'.