As already mentioned, a participation contract is not a legal requirement and many tenants who buy a property get along without one. However, given the potential for litigation, delays or cost assumption problems, it is proposed that such an agreement would be beneficial for the smooth running of the purchase. It is proposed that tenants, once generally willing to pursue a request for collective voting rights, identify responsibilities and formalize them through an agreement. At this stage, the following draft will be made available as an example to illustrate how the previously addressed points can be incorporated into a formal contractual agreement. Tenants who propose such an agreement are strongly advised to be advised by a lawyer experienced in collective voting rights under the 1993 Act. LEASE is not liable for any acts or damages resulting from the use of the example contract. In order to help the members of the company to make a decision that is not only in their best interest, but also well informed, the company should be required to comply with a disclosure obligation – details of negotiations and disclosure of all contacts and correspondence with the owner. This will allow the company to act at any time for the participating tenants and adopt instructions from them and not act solely on the basis of information that is not shared with them. The agreement should define the company`s obligations in the conduct of the negotiations. And controls and procedures by which participants will instruct it in negotiations and settlements. The most important thing is to define procedures so that only the company orders the selected professionals; Some tenants should not be able to contact the professionals themselves.
The participation agreement should contain a provision stating that the members of the enterprise have agreed to the initial notification and that they authorize the enterprise to send the initial notification to the lessor. In addition, the agreement should not only indicate the price indicated by the members of the enterprise in the initial notification, but, more importantly, that the members of the enterprise agree that the possible purchase price may exceed that amount, subject to agreed parameters or ceilings. Since it is the company that conducts the negotiations, the lawyer and expert should be appointed to advise the company and obtain their instructions from the company. The participation agreement should provide and clarify that tenants seeking advice on their individual position will not be able to consult with mandated advisors, thus avoiding the possibility of a conflict of interest. . . .