Charging Orders

Charging Orders

Charging orders are orders that are obtained against land which prevents a party disposing of the property until all the debts against the property are paid in full.  It does not force a sale but simply stops someone from selling their only asset to defeat debt due.

Under the Construction Contracts Act 2002, approval for the issue of a charging order over a site may be sought in an adjudication.  The idea is that the charging order will assist with the payment of debts as land cannot be sold until the debt is paid and the charging order is lifted.

Charging orders can be applied for against a respondent who is the owner of the construction site and where the respondent is not the owner per se but is jointly and severally liable with the owner for any payment to be claimant as an "associate".

To find out how to obtain a charging order, click here

To view a diagram illustrating the process, click here...