Kettingbeding

Chain clause

A chain clause is a contractual provision whereby the acquirer of an asset undertakes to impose the same obligations on any subsequent acquirer, thereby ensuring that the condition remains effective.

A chain clause is a provision in an agreement, typically included in a contract for the sale of real property, by which the purchaser undertakes to impose the same terms or restrictions on any subsequent purchaser in the event of resale. This creates a chain of obligations that binds future owners.

A chain clause is relevant because personal rights do not, as a rule, have effect against third parties; the chain mechanism ensures that the intended durability of the arrangement is achieved. The clause is frequently reinforced by a penalty provision and registered in the public registers.

In practice, a chain clause is used, for example, to maintain restrictions on use, rights of first refusal or quality-related prohibitions in relation to successive owners of a parcel of land.

“The deed of sale contained a chain clause prohibiting the use of the property for hospitality purposes, together with an obligation to impose that prohibition on any subsequent purchasers.”

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