Housing & Regeneration Article
23 November, 2017
Changes to the way CHAPS operates means that to the latest editions of Standard Commercial Property Conditions (SCPCs) and the Standard Conditions of Sale (SCSs) require amendments which are the standard terms frequently incorporated into property transactions.
CHAPS (the Clearing House Automated Payment System) is a same day payment system regularly used in property and other types of transactions. On 13 November 2017, the Bank of England announced that it had commenced direct delivery of the CHAPS service, which was previously operated by CHAPS Clearing Company Ltd.
The use of the CHAPS in day to day transactions albeit through a different operator should continue as previously. However, the latest editions of SCPCs and SCS do not encompass this latest change and will require amendments. In particular, the definition of "clearing bank" in condition 1.1.1 (c) of the Third Edition of SCPC and condition 1.1.1 (b) of the Fifth Edition of the SCS have now become incorrect.
The Law Society is in the process of amending both sets of conditions but has not given timescales. In the meantime it has suggested that "clearing bank" should be amended.
Contracts that are currently being negotiated will require this amendment to be made in order to reflect this change. For contracts that have already been negotiated but have not completed an amendment as recommended by the Law Society would also be necessary.
If you have any questions regarding any changes in relation to any contracts currently being negotiated, please contact the Housing & Regeneration (property) team on 01772 220022 or clcik here to submit an equiry via our website.
Clients rate Forbes Solicitors for its 'prompt action', 'flexibility' and 'very customer-focused approach'
2017 edition Legal 500
You were professional and well organised allowing for the court process to run flawlessly.
2011 Legal 500: The team at Forbes is 'responsive and proactive'.
Forbes are so attentive, always follow things up and are excellent value for money.
Chambers 2017: "They are friendly, professional, extremely effective advocates who always seek the best possible outcome."
2016 Legal 500: The 'holistic, fastidious and effective' team at Forbes Solicitors is noted for its 'wealth of sector knowledge'.