In brief: Whilst variation of a deed can be achieved,
there can be challenges in relation to the validity of the
variation
Property transactions often involve the use of call options (or
put and call options), particularly in relation to development
sites or transactions that require extended settlements. These
transactions are required to be documented by way of a deed.
Parties may later seek to vary the terms of the deed because of a
change in the commercial circumstances of either one or both
parties.
How can a deed be varied?
Deeds can only be varied in two ways:
- by a deed of variation; or
- by an agreement supported by consideration.
Often if the consideration element is difficult to prove,
parties will generally seek to vary the deed by using a deed of
variation.
