Legal
Chain clause
Obligation passed on to a subsequent owner.
A chain clause imposes an obligation that must be imposed on the next owner upon resale, such as a restriction on use or a right of first refusal. Unlike an obligation attached to the property, a chain clause does not automatically continue to apply unless repeated in the deed.
See also
Advice on selling or lettingFrequently asked questions about Chain clause
What does Chain clause mean?
Obligation passed on to a subsequent owner.
How does Chain clause work in commercial real estate?
A chain clause imposes an obligation that must be imposed on the next owner upon resale, such as a restriction on use or a right of first refusal. Unlike an obligation attached to the property, a chain clause does not automatically continue to apply unless repeated in the deed.
Related terms in legal
ROZ model
Standard commercial lease agreement.
Zoning plan / environmental plan
Permitted use of land and buildings.
Environmental permit
Permit for construction or change of use.
Break option
Right to terminate a lease early.
Right of superficies
Right to have a structure on someone else's land.
Ground lease for commercial land
Right to use land in return for ground rent.
Ask an agent
Unsure how this applies to your situation? Request a free rental or capital value assessment.
Free · no obligation · up to three proposals