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Letter of Obligation

The Letter of Obligation is a mainstay of the commercial and domestic property transaction. In recent years a number of standard provisions have been adopted in the majority of letters including use of the Law Society Conveyancing Committee approved style of "classic" letter of obligation for Sasine transactions and the styles produced in the Registration of Title Practice Book for first registrations and transfers of registered interests in the Land Register. There can be less consistency when it comes to commercial security transactions and lease transactions.

The PSG has produced a series of Letters which take into account the typical interests and requirements of the seller/purchaser; landlord/tenant; assignor/assignee and lender/borrower, and their respective solicitors in the majority of transactions, and which are designed to meet the criteria for "classic" letters of obligation for Master Policy purposes. Detailed PSG Guidelines below accompany this series. In addition please see the Law Society Conveyancing Committee guidance on letters of obligation available on the Law Society website.

Guidance Notes

Sales & Assignations

Loan Transactions

Lease Transactions