In a complex commercial property transaction involving multiple easements and restrictive covenants, the buyer's solicitor discovers a potential breach of a restrictive covenant that could affect the intended use. The contract is silent on this issue and settlement is due in 3 days. What is the most appropriate course of action?
Correct Answer
D) Get legal advice on raising requisitions and on delaying settlement
In complex commercial transactions with potential title defects discovered close to settlement, the prudent approach is to seek immediate legal advice on raising requisitions with the vendor's solicitor. This may result in settlement delay while the issue is resolved, but protects the buyer's interests and ensures clear title transfer.
Why This Is the Correct Answer
A possible breach of a restrictive covenant that affects intended use is a title issue. The buyer's solicitor should raise requisitions with the vendor and consider whether settlement should be delayed, which requires legal advice on the contract and the covenant.
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