International Comparative Legal Guide To: Real Estate by Tughans

ICLG

The International Comparative Legal Guide to:

Real Estate 2017 12th Edition A practical cross-border insight into real estate law

Published by Global Legal Group with contributions from:

Andreas Demetriades & Co LLC Brulc, Gaberščik in Kikelj o.p., d.o.o. BSA Ahmad Bin Hezeem & Associates LLP Cordero & Cordero Abogados Duncan Cotterill Ferraiuoli LLC Greenberg Traurig, LLP Gürlich & Co. Herbert Smith Freehills LLP Hogan Lovells HS Attorney Partnership Kubes Passeyrer Attorneys at Law Kyriakides Georgopoulos Law Firm

Mansukhlal Hiralal & Co. Maples and Calder Meyerlustenberger Lachenal Nishimura & Asahi Noerr Norton Rose Fulbright South Africa Inc. Osler, Hoskin & Harcourt LLP Pachiu & Associates Petrikić & Partneri AOD in cooperation with CMS Reich-Rohrwig Hainz Tughans VdA – Vieira de Almeida Ziv Lev & Co. Law Office

The International Comparative Legal Guide to: Real Estate 2017 General Chapter: 1

Contributing Editor Michelle Howie, Herbert Smith Freehills LLP Sales Director Florjan Osmani

Warranty and Indemnity Insurance in the UK Real Estate Market – Shona Grey, Herbert Smith Freehills LLP

Country Question and Answer Chapters: 2

Australia

Herbert Smith Freehills LLP: David Sinn

Austria

Kubes Passeyrer Attorneys at Law: Dr. David Kubes & Mag. Marko Marjanovic

Canada

Osler, Hoskin & Harcourt LLP: Heather McKean & Stella Di Cresce

Costa Rica

Cordero & Cordero Abogados: Hernán Cordero B. & Rolando Gonzalez C.

Cyprus

Andreas Demetriades & Co LLC: Demetris Demetriades

Czech Republic

Gürlich & Co.: Richard Gürlich & Kamila Janoušková

England & Wales

Herbert Smith Freehills LLP: Kathryn Oie & Michelle Howie

Chief Operating Officer Dror Levy

Germany

Herbert Smith Freehills Germany LLP: Johann Rumetsch & Stefanie Herkert

Group Consulting Editor Alan Falach

10 Greece

Kyriakides Georgopoulos Law Firm: Gus J. Papamichalopoulos & Katerina G. Politi

Group Publisher Richard Firth

11 India

Mansukhlal Hiralal & Co.: Purvi Asher & Bhushan Shah

Published by Global Legal Group Ltd. 59 Tanner Street London SE1 3PL, UK Tel: +44 20 7367 0720 Fax: +44 20 7407 5255 Email: info@glgroup.co.uk URL: www.glgroup.co.uk

12 Ireland

Maples and Calder: Diarmuid Mawe & Craig Kenny

13 Israel

Ziv Lev & Co. Law Office: Moshe Merdler & Ziv Lev

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14 Japan

Nishimura & Asahi: Hideaki Ozawa & Takahiro Yokota

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15 New Zealand

Duncan Cotterill: Paul Calder

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GLG Cover Design F&F Studio Design

16 Northern Ireland

Tughans: David Jones & Luke Thompson

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GLG Cover Image Source iStockphoto

17 Poland

Noerr: Paweł Żelich & Maciej Gorgol

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18 Portugal

VdA – Vieira de Almeida: Pedro Ferreirinha & Francisco Sousa Coutinho

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19 Puerto Rico

Ferraiuoli LLC: Eduardo Tamargo-Motroni & María del Rosario Fernández-Ginorio

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20 Romania

Pachiu & Associates: Ana-Maria Goga & Radu Noslacan

164

21 Serbia

Petrikić & Partneri AOD in cooperation with CMS Reich-Rohrwig Hainz: Marija Marošan & Đorđe Popović

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22 Slovenia

Brulc, Gaberščik in Kikelj o.p., d.o.o.: Damijan Brulc & Maja Perpar

183

23 South Africa

Norton Rose Fulbright South Africa Inc.: Pieter H. Niehaus

191

24 Spain

Hogan Lovells: Emilio Gómez Delgado

199

25 Switzerland

Meyerlustenberger Lachenal: Wolfgang Müller & Christian Eichenberger

208

26 Turkey

HS Attorney Partnership: İris Erbil & Ali Barış Şahin

215

27 United Arab Emirates

BSA Ahmad Bin Hezeem & Associates LLP: John Peacock & Robert Mitchley

221

Greenberg Traurig, LLP: Christina Braisted Rogers

230

Account Directors Oliver Smith, Rory Smith Sales Support Manager Paul Mochalski Senior Editor Rachel Williams

28 USA

Further copies of this book and others in the series can be ordered from the publisher. Please call +44 20 7367 0720 Disclaimer This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations.

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Chapter 16

Northern Ireland Tughans

1 Real Estate Law 1.1

Please briefly describe the main laws that govern real estate in your jurisdiction. Laws relating to leases of business premises should be listed in response to question 10.1. Those relating to zoning and environmental should be listed in response to question 11.1.

The main real estate legislation is the Landlord and Tenant Law Amendment Act reland 1860 or Deasy s Act the Conveyancing Acts, 1881 1 11 and the Settled Lands Act 1882 18 0. The Prescription Act 1832 deals with prescriptive easements in Northern reland 20 years being the length of time required to acquire an easement through prescription. The most significant modern real estate legislation includes the Property N Orders 1 78 & 1 7 and the Criminal Damage Northern reland Order 1 77, along with the Business Tenancies Northern reland Order 1 6. 1.2

What is the impact (if any) on real estate of local common law in your jurisdiction?

Northern reland is a common law jurisdiction and therefore the courts do have an impact on real estate law. The Lands Tribunal has extensive powers to extinguish historic covenants that would “unreasonably” affect the enjoyment of land. The case law of England will also be persuasive, but not binding, in Northern reland save for where Northern rish law specifically differs. 1.3

Are international laws relevant to real estate in your jurisdiction? Please ignore EU legislation enacted locally in EU countries.

No, save for certain K-wide legislation in areas such as ta and competition law that can impact on real estate.

2 Ownership 2.1

Are there legal restrictions on ownership of real estate by particular classes of persons (e.g. non-resident persons)?

There are no general restrictions on ownership of property, for example to overseas entities. However, it is possible to have

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restrictive covenants or inhibitions on the title to individual properties that impose restrictions.

3 Real Estate Rights 3.1

What are the types of rights over land recognised in your jurisdiction? Are any of them purely contractual between the parties?

Specific rights over land will include rights of way, rights of support, rights to light and/or air, wayleaves and profit-à-prendres. Rights that are expressly included or implied into a contract will be purely contractual between the parties unless it is stated that they are given by and for the successors to the parties. These rights can also be acquired by necessity or prescription. A grant of a licence or tenancy at will also creates contractual rights over land. 3.2

Are there any scenarios where the right to a real estate diverges from the right to a building constructed thereon?

No, there are not.

4 System of Registration 4.1

Is all land in your jurisdiction required to be registered? What land (or rights) are unregistered?

Not all land in Northern reland is registered. From 2003, there has been a system of compulsory first registration in place when a transaction takes place involving unregistered land, the title must be registered at the Land Registry post completion. The exceptions to this rule are: transactions with no consideration; mortgages; leases for a term of less than 21 years e changes or partitions of land (involving no consideration); dealings with reversionary interests; and the surrender of leases. There are also a number of burdens as set out in Schedule 5 of the Land Registration Act Northern reland 1 70 that will affect registered land without being registered. 4.2

Is there a state guarantee of title? What does it guarantee?

Information contained on the Title Register at the Land Registry is considered to be conclusive evidence of title. This is supported by

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4.3

What rights in land are compulsory registrable? What (if any) is the consequence of non-registration?

n Northern reland, rights in land are registered at the Land Registry as burdens on title. Part 1 of Schedule 6 of the Land Registration Act Northern reland 1 70 has a list of the burdens registrable on the Title Register. If two burdens are created at the same time after first registration , the burden that is registered first at the Land Registry will receive priority over the other burden and any burden created subsequently. If a registrable burden is not registered, a bona fide purchaser for value without notice will not be subject to it. 4.4

What rights in land are not required to be registered?

n Northern reland, rights in land are registered at the Land Registry as burdens on title. Part 1 of Schedule 5 of the Land Registration Act Northern reland 1 70 has a list of the burdens that will affect registered land without registration on the Title Register. As not all land in Northern reland is registered, rights in land that affect unregistered land will not be registered. 4.5

Where there are both unregistered and registered land or rights is there a probationary period following first registration or are there perhaps different classes or qualities of title on first registration? Please give details. First registration means the occasion upon which unregistered land or rights are first registered in the registries.

Depending on the nature of the title held, an applicant for first registration may apply to be registered with one of the following five classes of title: Absolute Title generally refers to freehold title and is the best class of registered title. It is usually only granted if an applicant can demonstrate that their title commenced with a disposition made at least 15 years previously. A recent practice direction issued by the Registrar of the Land Registry has introduced an e ception where an application is made in relation to freehold land acquired under the Ground Rents Act N 2001, the applicant will receive absolute title. There is also a class of absolute title for land held by way of a fee farm grant or lease. This will only be granted if title commences with a fee farm grant or lease made at least 15 years prior to registration and the grantor’s/lessor’s title has been fully examined. Good Fee Farm Grant title will be registered as good fee farm grant when land is held by way of a fee farm grant that commenced 15 years prior to registration, but the title of the grantor has not been proved. The only difference from absolute fee farm grant title is that registration will not prejudice any estate arising by virtue of any superior grant. Good Leasehold Title in Northern reland, only a lease with a term of more than 21 years remaining outstanding can be registered at the Land Registry, although shorter term leases can still be voluntarily noted against superior titles. A lease will be registered

with good leasehold title when the leaseholder has not proved the superior title. The only difference from absolute leasehold title is that registration will not affect the enforcement of any rights adverse to the title of the lessor to grant the lease. Qualified Title granted to either freehold or leasehold title if the title is unable to meet the requirements for an absolute, good fee farm grant or good leasehold title. The Land Registry may also confer a qualified title if they are not satisfied that registration with an absolute, good fee farm grant or good leasehold title is justified. Possessory Title granted for an application to register land that has been acquired by way of adverse possession. Possessory title will not affect the enforcement of any right adverse to the title of the owner. 4.6

Northern Ireland

a state guarantee of title, which enables compensation to be claimed for errors and omissions in the Title Register. However, although the Land Registry provides a map-based system to support the Title Register, the boundaries shown on the Land Registry maps are not guaranteed.

Northern Ireland

On a land sale, when is title (or ownership) transferred to the buyer?

A transfer/conveyance/assignment deed documents a transfer, but does not operate to validly transfer the land until the transferee is registered as the owner at the Land Registry, if such transfer is registrable. If unregistered land is transferred and the transaction meets the criteria for compulsory first registration, an application to register the title must be made within three months. An application not made within this timeframe will become void and title can revert to the seller. Although the seller, having received the purchase money, should then hold the land as a trustee for the buyer; and it is possible that the buyer’s equitable interest in the land can be defeated by prior equitable interests. 4.7

Please briefly describe how some rights obtain priority over other rights. Do earlier rights defeat later rights?

Rights affecting registered land will receive priority in the order in which they are registered. This rule of priority does not apply to rights over registered land created prior to first registration of the title or those included in Part 1 of Schedule 5 of the Land Registration Act Northern reland 1 70.

5 The Registry / Registries 5.1

How many land registries operate in your jurisdiction? If more than one please specify their differing rules and requirements.

There is only one Land Registry in Northern reland. n order to have title to land registered, a solicitor will need to inspect the title and certify it before submitting a registration application to the Land Registry. Registered titles are considered conclusive and are backed by a state guarantee. However, the mapping system that accompanies the register is not considered conclusive and therefore is not backed by a state guarantee. A branch of the Land Registry is known as the Registry of Deeds, running in tandem with the main land register. The Registry of Deeds is simply a register of deeds. It is not tied to the land; it records details of deeds by noting them against the entities who are parties to the respective documents. This is the only register that can be searched when dealing with unregistered property.

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5.2

Does the land registry issue a physical title document to the owners of registered real estate?

Historically, a Land Registry issued Land Certificate was required when applying to register any dealing with land at the Land Registry. However, following a policy of dematerialisation since 2011, Land Certificates are no longer required. Details of registered land are held within “Folios”, copies of which can be obtained from the Land Registry. However, it is important to note that any copy Folio produced is only a representation of that Folio on the date it was issued. 5.3

Can any transaction relating to registered real estate be completed electronically? What documents need to be provided to the land registry for the registration of ownership right? Can information on ownership of registered real estate be accessed electronically?

It is not possible for a transaction relating to land, registered or not, to be completed electronically. The relevant physical documents to any transaction must be executed or signed by the parties to the transaction. If the title is registered, a transfer of ownership will be registered when the Land Registry is provided with a correctly completed transfer in the prescribed form. f the title is unregistered, the process of first registration must be completed, meaning all relevant title to the land must be provided and certified by a solicitor.

Northern Ireland It is a requirement for any conveyance of land to be carried out by a solicitor in this jurisdiction. The role of a solicitor will vary depending on which party they are acting for. In very brief terms, the solicitor for the seller will provide title to the real estate, draft the contract, provide search results and negotiate terms on behalf of the seller. The solicitor acting for the buyer will review and report on the title and negotiate terms on behalf of the buyer. Although it is not a requirement, a seller often uses a surveyor/estate agent, whose role will typically involve valuing and marketing the property and liaising with potential interested buyers at the precontractual stage. 6.2

Surveyors/estate agents are generally remunerated following completion, based on a percentage of the sale price. In relation to lawyers, a common basis for remuneration is connected to time spent, based on an hourly rate. However, an agreed fee based on a predetermined scope of work is also common. The solicitor and their respective client should agree a basis for payment prior to a transaction commencing, with payment of all such fees generally made upon completion, unless interim billing is necessary. 6.3

The information on ownership of registered land is publicly accessible and can be accessed electronically for a fee. 5.4

Can compensation be claimed from the registry/ registries if it/they makes a mistake?

The information contained on the Title Register is considered conclusive title to land and is backed by a state guarantee. Therefore, compensation for loss arising out of a mistake on a registered title is recoverable, but not in relation to the mapping system, as referred to previously. 5.5

Are there restrictions on public access to the register? Can a buyer obtain all the information he might reasonably need regarding encumbrances and other rights affecting real estate?

The information contained at the Land Registry relating to registered land is publicly accessible. Any potential buyer can obtain all the information they should reasonably need regarding encumbrances and other rights to land provided that information is registered. However, there is still a significant amount of unregistered land where it can be impossible to access any details.

How and on what basis are these persons remunerated?

Do you feel there is a noticeable increase in the availability of capital to finance real estate transactions in your jurisdiction, whether equity or debt? What are the main sources of capital you see active in your market?

There is a definite increase in the availability of capital to finance real estate transactions in Northern reland. The local banks are starting to appear in the market again, albeit quite tentatively. There is a significant growth in funds, new private investors and mezzanine lenders in the local market, across various sectors. 6.4

What is the appetite for investors and developers in your region to look beyond primary real estate markets and transact business in secondary or even tertiary markets? Please give examples of significant secondary or tertiary real estate transactions, if relevant.

The year 2016 has witnessed a move by both developers and investors back into the secondary and tertiary real estate markets. Tughans acted in the two most significant e amples of such transactions the acquisition of the Flagship Shopping Centre, Bangor and the acquisition of the Tower Centre, Ballymena. 6.5

Have you observed any trends in particular market sub sectors slowing down in your jurisdiction in terms of their attractiveness to investors/developers? Please give examples.

6 Real Estate Market 6.1

Which parties (in addition to the buyer and seller and the buyer’s finance provider) would normally be involved in a real estate transaction in your jurisdiction? Please briefly describe their roles and/or duties.

Most sub sectors are still in recovery/growth mode at present. Although most of the major prime retail stock has transacted recently, so there is likely to be a lull in this area.

Real estate transactions will also involve a solicitor acting for the buyer, a solicitor acting for the seller and, at times, a surveyor/estate agent.

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7.1

What (if any) are the minimum formalities for the sale and purchase of real estate?

Any sale or purchase of real estate must be completed by way of a written contract. A Law Society produced standard form of contract, tailored by the inclusion of special conditions, is often used on lower value, more straight forward transactions. However, it is really designed for residential conveyancing, rather than commercial. 7.2

Can the seller be liable to the buyer for misrepresentation?

For a seller to be liable to the buyer for misrepresentation, three grounds must be proved: (i) the misrepresentation occurred prior to the contract being formed; (ii) the misrepresentation was of fact and not opinion or law; and (iii) the misrepresentation induced the purchaser to enter into the contract. The seller can be liable for either fraudulent or innocent misrepresentation. If liable for fraudulent misrepresentation, the buyer can seek damages or rescission prior to completion of the contract; or apply to have the contract set aside or seek damages after completion. If the seller is liable for innocent misrepresentation, the remedies available are more limited. However, the buyer may still seek rescission and the Misrepresentation Act N 1 67 provides the courts with discretion to award damages in lieu of rescission. 7.4

Do sellers usually give contractual warranties to the buyer? What would be the scope of these? What is the function of warranties (e.g. to apportion risk, to give information)? Are warranties a substitute for the buyer carrying out his own diligence?

n general, save as referred to in question 7.5 below, warranties are only used when there is a corporate element to the transaction i.e. the transfer of shares in a company that owns the real estate. 7.5

Does the seller warrant its ownership in any way? Please give details.

The seller can state that it is transferring its interest in the real estate as beneficial owner and this will imply covenants regarding the nature of its title.

What (if any) are the liabilities of the buyer (in addition to paying the sale price)?

Buyers will be subject to stamp duty land tax, following the same rules as in England and Wales, along with Land Registry registration fees.

8 Finance and Banking 8.1

Is the seller under a duty of disclosure? What matters must be disclosed?

A seller has a duty to provide good and marketable title but the principle of ‘caveat emptor’ also applies to real estate transactions. There is a responsibility on the buyer to carry out its own due diligence. Therefore, as a general rule, the seller has no duty of disclosure; but there are exceptions and a degree of disclosure is standard practice. The seller has a duty to disclose latent physical defects or latent defects in its title which it is aware of or should reasonably be aware of. A latent defect is a defect which is not reasonably discoverable from inspection of the property or the materials supplied to the buyer. 7.3

7.6

Please briefly describe any regulations concerning the lending of money to finance real estate. Are the rules different as between resident and non-resident persons and/or between individual persons and corporate entities?

Northern Ireland

7 Liabilities of Buyers and Sellers in Real Estate Transactions

Northern Ireland

The same financial regulations that affect England and ales apply in Northern reland, including the same anti-money laundering regulations. 8.2

What are the main methods by which a real estate lender seeks to protect itself from default by the borrower?

Lenders will generally seek security through a fi ed charge registered against the real estate and in some cases will go further and require debentures, personal guarantees, cross company guarantees, funder warranties from contractors and a professional team, etc. 8.3

What are the common proceedings for realisation of mortgaged properties? Are there any options for a mortgagee to realise a mortgaged property without involving court proceedings or the contribution of the mortgagor?

The most common method is the appointment of a fi ed charge receiver, who can sell the property without requiring lengthy court proceedings or a mortgagor contribution. Depending on the nature of the security, an administrator or administrative receiver can also be appointed, or the lender can exercise a power of sale itself. 8.4

What minimum formalities are required for real estate lending?

An offer letter/facility letter from the lender, lender getting comfortable with the title and a mortgage/charge deed. 8.5

How is a real estate lender protected from claims against the borrower or the real estate asset by other creditors?

The principle lender will usually have a first ranking fi ed charge registered against the title, along with an inhibition, preventing any dealings with the title without the lender’s consent.

9 Tax 9.1

Are transfers of real estate subject to a transfer tax? How much? Who is liable?

Stamp duty land tax is payable in accordance with the same legislation as in England and Wales.

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9.2

When is the transfer tax paid?

ithin 30 days following the effective date of the transaction (generally the completion date). 9.3

Are transfers of real estate by individuals subject to income tax?

Income tax will only be payable on the sale of real estate by an individual if the individual operates a business for the purpose of buying and selling properties and that individual operates the business as a sole trader or partner. 9.4

Are transfers of real estate subject to VAT? How much? Who is liable? Are there any exemptions?

The rules in Northern reland are the same as England and ales, and so real estate is exempt from VAT. However, an owner can choose to waive the exemption and charge VAT on commercial property, this is called an ‘option to tax’. Once this option is exercised, it cannot be revoked for 20 years, but the option is personal and does not transfer with the property. Commercial property that is under three years old will also be subject to VAT. If payable, VAT will generally be charged at the standard rate, currently 20 and the buyer will pay it on top of the purchase price. The most common exemption from VAT on investment transactions is to treat the deal as a transfer of a going concern. 9.5

What other tax or taxes (if any) are payable by the seller on the disposal of a property?

Depending on the seller’s circumstances and the nature of the transaction, capital gains tax or income tax may be payable by the seller. The tax rules follow England and Wales and specialist tax advice should always be sought. 9.6

Is taxation different if ownership of a company (or other entity) owning real estate is transferred?

Yes, if the shares in a company are transferred, rather than the real estate itself, stamp duty will be payable by the buyer on the share price at a rate of 0.5 currently.

Leases of Business Premises

10.1 Please briefly describe the main laws that regulate leases of business premises.

Criminal Damage Northern reland Order 1 77 deals with damage caused to premises as a result of civil unrest; and Business Tenancies Northern reland Order 1 6 deals with security of tenure rights for business tenants and bringing such leases to an end. 10.2 What types of business lease exist?

The most typical are: a lease of a whole building, with the tenant taking full repairing liability; or a lease of part, with the landlord responsible for looking after the structure and common parts, then

Northern Ireland recharging a fair and reasonable proportion of such costs to the tenant through a service charge. In both cases, the landlord will generally insure and recharge the premium to the tenant as insurance rent. 10.3 What are the typical provisions for leases of business premises in your jurisdiction regarding: (a) length of term; (b) rent increases; (c) tenant’s right to sell or sub-lease; (d) insurance; (e) (i) change of control of the tenant; and (ii) transfer of lease as a result of a corporate restructuring (e.g. merger); and (f) repairs?

Typically three to 20 years depending on the deal.

(b)

Typically open market or index-linked rent reviews every five years.

(c)

Typically permitted, subject to landlord approval and other restrictions, but subletting is more restricted.

(d)

Landlord generally insures and charges tenant insurance rent.

(e)

Leases are often silent on change of control and restructuring.

(f)

Repairs can be dealt with in a number of ways and are very deal property-specific.

10.4 What taxes are payable on rent either by the landlord or tenant of a business lease?

VAT can be payable, along with income/corporation tax. 10.5 In what circumstances are business leases usually terminated (e.g. at expiry, on default, by either party etc.)? Are there any special provisions allowing a tenant to extend or renew the lease or for either party to be compensated by the other for any reason on termination?

Leases can terminate at expiry, following default, upon exercise of a break option, or following a refusal to agree a renewal under the Business Tenancies Order. The Business Tenancies Order provides the tenant with security of tenure rights, allowing it to remain in occupation after the expiry of the term. The landlord can only refuse to grant a new lease to such a tenant on a number of statutory grounds, some of which require compensation to be paid to the tenant. It is not possible to contract out of such security of tenure rights. 10.6 Does the landlord and/or the tenant of a business lease cease to be liable for their respective obligations under the lease once they have sold their interest? Can they be responsible after the sale in respect of pre-sale non-compliance?

The parties are no longer liable once they have transferred their interest. 10.7 Green leases seek to impose obligations on landlords and tenants designed to promote greater sustainable use of buildings and in the reduction of the “environmental footprint” of a building. Please briefly describe any “green obligations” commonly found in leases stating whether these are clearly defined, enforceable legal obligations or something not amounting to enforceable legal obligations (for example aspirational objectives).

Tughans has attempted to encourage the use of such leases in

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Northern reland and a couple of landlords have adopted some lighttouch aspirational objectives, but nothing too hard-hitting yet.

Public Law Permits and Obligations

11.1 What are the main laws which govern zoning and related matters concerning the use and occupation of land? Please briefly describe them and include environmental laws.

Northern Ireland 11.7 Are there any regulations on the protection of historic monuments in your jurisdiction? If any, when and how are they likely to affect the transfer of rights in real estate?

Buildings and monuments can be listed to varying degrees, restricting what can be done to them and imposing repairing obligations. Such restrictions run with the property, so will apply to a buyer when the property is transferred.

Planning Act Northern reland 2011 and the Planning se Classes Order Northern reland 2015, along with E -driven environmental legislation.

11.8 How can e.g. a potential buyer obtain reliable information on contamination and pollution of real estate? Is there a public register of contaminated land in your jurisdiction?

11.2 Can the state force land owners to sell land to it? If so please briefly describe including price mechanism.

An environmental survey can be requisitioned prior to entering into contract.

Certain public sector bodies have compulsory purchase powers, with compensation based on the rateable value of the property. 11.3 Which bodies control land/building use and/or occupation and environmental regulation? How do buyers obtain reliable information on these matters?

The local authorities control the planning system and the N Environment Agency controls environmental regulation. Buyers obtain reliable information on such issues through the local authority and regional property certificates, along with statutory charge searches that the seller will order and pay for as part of the title pack provided pre-contract.

11.9 In what circumstances (if any) is environmental cleanup ever mandatory?

The N Environment Agency can force pollution to be cleaned up. 11.10 Please briefly outline any regulatory requirements for the assessment and management of the energy performance of buildings in your jurisdiction.

The energy performance regulations follow those in England and Wales.

12 11.4 What main permits or licences are required for building works and/or the use of real estate?

Planning permission and building regulation approval. In some cases, conservation area consent and listed building consent may also be required.

Northern Ireland

Tughans

Climate Change

12.1 Please briefly explain the nature and extent of any regulatory measures for reducing carbon dioxide emissions (including any mandatory emissions trading scheme).

The position follows that in England and Wales. 11.5 Are building/use permits and licences commonly obtained in your jurisdiction? Can implied permission be obtained in any way (e.g. by long use)?

Generally, planning permission is obtained, but enforcement action cannot be taken once a change of use or development has been in existence for a certain period of time, depending on the circumstances. 11.6 What is the appropriate cost of building/use permits and the time involved in obtaining them?

The cost and time involved are dependent upon the nature of the application and the timing is very dependent on the particular local authority involved.

12.2 Are there any national greenhouse gas emissions reduction targets?

This follows the UK, with separate regional targets. 12.3 Are there any other regulatory measures (not already mentioned) which aim to improve the sustainability of both newly constructed and existing buildings?

Building regulations attempt to incorporate some sustainability measures where buildings are being constructed or renovated and legislative changes are due that will prevent buildings with poor energy performance ratings from being sold or let until the rating is improved.

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Northern Ireland David Jones

Luke Thompson

Tughans Marlborough House 30 Victoria Street Belfast BT1 3GG Northern Ireland

Tel: Fax: Email: URL:

+44 28 9082 0531 +44 28 9055 0096 david.jones@tughans.com www.tughans.com

David has experience of all aspects of commercial property in England and Wales and Northern Ireland, including the acquisition and disposal of development and investment properties, leasing and property management (acting for both landlords and tenants) across all sectors. David also works with colleagues in the corporate department on the property aspects of business and company sales and acquisitions. David is dual-qualified in England and Wales and Northern Ireland and is on the committee of the Northern Ireland Commercial Property Lawyersâ&#x20AC;&#x2122; Association, along with being a member of the Institute of Directors. Trained with City of London firm Nabarro Nathanson (now Nabarro LLP) and qualified into the commercial property department, working at the firm from January 2002 until September 2007, when he moved back to Belfast to work for Tughans. He now leads the real estate team at Tughans.

+44 28 9055 3316 +44 28 9055 0096 luke.thompson@tughans.com www.tughans.com

Luke began working in Tughans in August 2013. Luke spent two years training in different practice areas before qualifying into the Real Estate department. Luke has experience in a wide range of real estate transactions. This includes the acquisition and disposal of investment property and the leasing of retail, industrial and office space; acting for both landlords and tenants. Luke works closely with other departments within Tughans, advising on all property aspects. Recently, Luke provided property advice for a high-value business acquisition which saw a client purchase a number of wind farms from a leading independent national operator of renewable energy projects.

Tughans was established in Belfast in 1896 and is the largest full-service commercial law firm in Northern Ireland, with a full range of clients across all major industry sectors, ranging from the largest global businesses (such as Apple), to local, family-owned operations. The real estate team is the largest in NI and has been involved in 90% of all the major real estate transactions in the jurisdiction, since the market started to recover and major deals started taking place again.

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