What is the interest rate provided for in contracts incorporating the Standard Conditions of Sale (Fifth Edition - 2018 revision)?

What is the interest rate provided for in contracts incorporating the Standard Conditions of Sale (Fifth Edition - 2018 revision)?

• A. The Bank of England base rate
• B. The seller's rate
• C. The buyer's rate
• D. The Law Society's interest rate

Answer: (D)

The rate is the Law Society's interest rate. In contracts adopting the Standard Conditions of Sale (Fifth Edition, 2018 revision), any interest charged on money due under the contract—such as late payment or late completion—uses the Law Society’s published rate. This provides a neutral, publicly available benchmark that applies across conveyancing transactions. It isn’t tied to the Bank of England base rate, nor to a rate chosen by the seller or buyer, which keeps the terms consistent and predictable. If money becomes due and is late, interest accrues at that Law Society rate from the due date until payment is made, subject to any specific contractual provisions.

The rate is the Law Society's interest rate. In contracts adopting the Standard Conditions of Sale (Fifth Edition, 2018 revision), any interest charged on money due under the contract—such as late payment or late completion—uses the Law Society’s published rate. This provides a neutral, publicly available benchmark that applies across conveyancing transactions. It isn’t tied to the Bank of England base rate, nor to a rate chosen by the seller or buyer, which keeps the terms consistent and predictable. If money becomes due and is late, interest accrues at that Law Society rate from the due date until payment is made, subject to any specific contractual provisions.