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Types of deeds on new build developments

By Ellie Johnson

When commencing on a new residential property development, one of the main legal aspects to get right is ensuring that the land and the development comply with and provide all relevant property rights and covenants which might be required. This often means that various types of deeds are required.

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In this blog, we will explore three common types of deeds encountered in residential property development: Deeds of Easement, Deeds of Variation and Deeds of Release. Each type of deed serves a unique purpose, so it is important to understand their roles.

Deeds of Easement

An easement is a right that allows one party to use another party’s land for a specific purpose, and a Deed of Easement is the formal legal document which creates these rights. Deeds of Easements might be used for the following purposes:

Access rights : If the development requires a private road or driveway that crosses a neighbouring property, or the owner of a neighbouring property needs to cross the development land to access their property, a Deed of Easement can grant the legal right to use the land for the access purpose required.

Utilities : Easements are often required to allow for essential services such as electric, gas or water pipelines to pass through the development land, and to allow for various parties to access these utilities for maintenance and repair purposes.

Drainage rights: A Deed of Easement may be necessary if the development needs to connect into a drainage system which falls outside of the development land. Drainage rights may also need to be granted to sewerage undertakers to access the drainage systems on a development where the drainage runs within private unadopted areas.

By securing the correct Deeds of Easement, a developer can ensure that the development benefits from the necessary rights to ensure it operates effectively and that the rights in question are enforceable in the future.

Deeds of Variation

A Deed of Variation is used to modify the terms of an existing legal document, for example a transfer or a lease. They are especially useful in property developments where the contents of existing agreements might hinder or reduce the scope of the proposed development. A Deed of Variation might be used to:

Modify restrictive covenants: As restrictive covenants are binding and dictate what can and cannot be done with a property, they have the potential to severely limit the type and range of work which a developer may carry out on their land. For example, a restrictive covenant may restrict building on a specific portion of the land. A Deed of Variation would be used in this instance to amend the problematic covenant.

Adjusting terms and obligations : If any of the legal documents relating to the development land include unfair terms or obligations, or ones which become impossible for a party to perform, a Deed of Variation can be used to vary the terms and obligations within the existing documents to make them more favourable to either party.

Easement adjustments: I f an existing easement needs to be altered for any reason, for example to widen a route of access or extend a utility cable easement, as Deed of Variation would be used to give effect to this change.

Deeds of Release

A Deed of Release would be used to remove or ‘release’ a party from a legal obligation or restriction, or for a party to release rights in their favour which they have over a piece of land. A Deed of Release might be necessary in the following circumstances:

Releasing Rights or Easements: I f a right or easement is no longer required, a Deed of Release can operate to extinguish the right. This can be beneficial if an easement would otherwise impede on the developer’s plans for development.

Releasing restrictive covenants: If a restrictive covenant can be completely removed, because for example it limits the use of the development land, a Deed of Release may be used to completely release the development land from the restrictive covenant.

Navigating the complex legal detail of various deeds can be challenging, which is where a residential development solicitor can help. A solicitor who specialises in residential development can ensure that any deeds necessary to progress your development are correctly drafted, negotiated and registered at Land Registry.

If you are a developer and need advice on any of the deeds listed above, or any other deeds relating to your development, don’t hesitate to get in touch with our specialist Property Development team. Call us on 0800 1380 458 or email help@switalskis.com

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Ellie has worked in the legal sector for over five years. She is an Associate Chartered Legal Executive in our Property Development department.

Associate Chartered Legal Executive

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