The new optional practice allows, with the agreement of that candidate and the economic beneficiary, to treat the designated economic beneficiary as the purchaser of a person who transfers an interest in real estate to a designated beneficiary, in order to determine whether there is a transfer of an outstanding concern. Paragraph 8.2 gives an example that allows you to record the agreement. The decision seems right. However, if you consult in a similar situation, remember that this case seemed to revolve over the terms of the condition in the agreement for the lease. If the sale to the university had actually been concluded, it might not have been a TOGC. “In the normal case of the transfer of a property, it is probably enough that the additional element is a transfer of a tenancy agreement to a tenant or even an agreement with an alleged tenant. As long as the transferred lease (or contract) may actually have been part of the seller`s business, the legal requirements will be met… Here, however, the agreement on a lease was not at all part of the seller`s business. The supposed tenants were never part of the [seller`s] business, they came from the buyer.

The agreement was concluded directly and was only part of the sales activity. No part of the seller`s activity was transferred to the buyer. For this reason, the transfer was not a transfer of an ongoing application. (our priority) You need to check whether the person buying your assets intends to operate the business in the same way as you do. You can. B insert a guarantee for the buyer`s intentions in the sales contract. Coleridge agreed to sell Theobalds Road to the university. BAPM wanted to move with the college and remain a tenant, so Coleridge and BAPM entered into a contract to lease a room in the property. The agreement was conditional on Coleridge exchanging contracts to sell the property to the university. The sales contracts were duly exchanged and concluded and the college granted the lease to BAPM.