Building contract novation agreement

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Document overview

Easy to use novation agreement for use where the customer of an architectural or construction contract changes part-way through the project (e.g. where the land and part-completed buildings are sold).
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Compliant with the latest law in
  • England & Wales
  • Scotland
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  • Length:4 pages (1475 words)
  • Available in:
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About this document

Use this agreement to transfer a contract for the design or build of a property to the purchaser on the sale of land. It can be used with any building contract, usually with only minimal editing.

When novating, the consent of all three parties: the transferee, the transferor and the other contracting party is required to effect the transfer.

When to novate

Typically (although not exclusively) this agreement would be used in the following situations:

  • when the owner of a development is forced to sell before completing the project and the buyer wishes the existing contractor to continue the development

  • when an unincorporated business is sold along with an unfinished land or building development

This agreement could be used by:

  • a seller looking to make the purchase of his land as easy and attractive for a buyer as possible (even easier if the agreement is signed by the contractor in advance of the sale)

  • a buyer wishing to sort out the affairs of a seller having bought an unfinished property

  • a builder, tradesman or architect who wants to keep developing the site even though the customer changes

Features and contents

  • Suitable when either party is resident outside the UK
  • Ensures a legal transfer as it is drawn as an agreement between all parties
  • Comprehensive provisions provide ideas for you to mould

The agreement contains the following sections:

  • Details of the parties
  • Indemnity clause to protect both parties from loss, damage or legal liability once the contract is transferred
  • The novation
  • Other usual legal provisions in plain English
Sample building contract novation agreementSample page from the novation agreement for a building contract

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