If a Green Deal is in place on the property, what must be done in the contract?

• A. If a Green Deal exists, insert a condition that the buyers take over repayments.
• B. Pay off the Green Deal before completion.
• C. Cancel the Green Deal.
• D. Ignore it if the property has a mortgage.

Answer: (A)

Green Deal repayments are tied to the property as a charge, so when ownership changes hands the new owner is typically responsible for continuing those repayments unless the loan is settled or formally transferred. The contract should therefore include a condition that the buyers take over the Green Deal repayments. This novation or assignment of the loan ensures the lender’s security remains intact and that the new owner inherits the obligation to repay.

Paying off the Green Deal before completion isn’t guaranteed or always feasible, and often requires lender consent. Canceling the Green Deal isn’t something that can be done unilaterally, and ignoring it isn’t appropriate because the loan remains a charge on the property and could affect the buyer’s position after completion.