Deferring payment of part of the purchase price

In the current climate, in order to facilitate a sale, a seller might allow a buyer to defer part of the purchase price until a later date. A deferred consideration clause has been included in the Property PSL precedents (clause bank – agreements for sale); see: the related Drafting Note. Great care needs to be taken to protect a seller’s right to receive a deferred consideration. Although the seller would enjoy the benefit of a registrable equitable charge, such a charge is likely to be void against a buyer’s mortgagee unless protective steps are taken before the mortgagee is able to obtain a clear search certificate. Read the Drafting Note for further information.