000 01387cam a2200277 4500
001 ABS68257
008 040915n2004 000 0 eng u
035 _a(Sirsi) u127402
100 _aO'Brien, S.
245 _aDon't sign up to assignments
260 _c2004
490 _aEstates Gazette
_v(0432) 7 August 2004, 57-58(2)
520 _aA prelet agreement can be an important asset to lenders, since it reduces the risk that once a property is built, it will fail to generate the income to service the loan. But the article argues lenders should be wary of seeking an assignment of the benefit of such agreements. Outlines the dangers this could present and discusses ensuring security, enforcement of covenants, danger of assigning the prelet agreement and personal covenants. Concludes that an assignment of a prelet agreement is risky because it may remove the choices from the lender to step in under its warranty package, or to go into possession as mortgagee and oblige them to build the development.
590 _aABS
590 _aABS
650 _aLANDLORD AND TENANT (COVENANTS) ACT 1995
650 _aENFORCEMENT OF COVENANTS
650 _aPRELET AGREEMENTS
650 _aASSIGNMENT
650 _aLENDERS
650 _aCOVENANTS
650 _aPERSONAL COVENANTS
650 _aSECURITY FOR LOAN
690 _aLANDLORD AND TENANT-LEASES
942 _n0
999 _c118001
_d118001