Is there a linked transaction when a buyer buys from two joint owners?

Home Forums Patrick Cannon Is there a linked transaction when a buyer buys from two joint owners?

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    Jupiter Button
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    Another linked transactions discussion point!

    A and B jointly own property in equal shares. Buyer approaches A and B for purchase of property.

    A and B know something of the linked transactions rules and decide that each should negotiate separately and independently for sale of their respective half share. A accepts that he may successfully complete on the sale of his share but that B may not. B likewise accepts that he may successfully complete on the sale of his share but that A may not. In other words neither sale is conditional on the other. This is documented.

    A’s negotiation proceeds more quickly than B and A exchanges and completes even before B has reached agreement for sale. A month of so later B exchanges (on a similar but not identical contract for sale) and completes a further month later. The entire property had been valued at ?500k and the purchase price agreed for each sale was ?250k. There was no economic interdependence between the two transactions.

    Is it arguable that the two sales are not linked or is there the interdependence referred to in AG v Cohen?

    #608 Reply
    Patrick
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    On the face of it this works as long as A and b are not connected persons as they will be separate vendors.

    #610 Reply
    Jupiter Button
    Guest

    oversight – A and B connected

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