Buying or Selling Commercial Property

Whether you’re an experienced investor with a portfolio of properties or a business owner purchasing your first commercial space, we recognise that buying or selling commercial property can be complicated and stressful, especially while managing a business.

We will guide you through everything you need to consider from the initial stages of negotiation, all the way through to the completion of sale.

We have extensive experience in buying and selling all types of commercial property, including:

• residential and commercial development sites
• offices
• industrial and retail units
• retail and leisure developments
• hotels, restaurants and pubs
• care homes
• agricultural land
• investment properties

Whilst every transaction is unique, following are the general stages of buying and selling commercial property in brief;

Initial Stage

The terms of the sale/purchase are generally negotiated through an Agent and Heads of Terms, which set out the details of the agreed sale, are sent to all parties and their advisers.  As your solicitors, we will carry out our file opening procedure and work through the Heads of Terms with you. A buyer client may need to decide on the ownership structure of the property and both a buyer and seller should consult with an accountant regarding potential tax benefits.

Pre-Contract Stage

The draft Contract and a supporting package of documentation, to include title deeds and replies to standard form enquiries, are issued to the buyer’s solicitor by the seller’s solicitor. The buyer’s solicitors will review and advise on the draft Contract and documentation and put in hand required pre-contract searches, which may take 2-3 weeks, reporting on the search results and advising on any matters arising.  The buyer’s solicitor will also review the buyer’s lender’s requirements, if applicable. Once all matters arising have been dealt with and the parties are satisfied with the documentation and findings, the contract will be signed.  A deposit (typically 10% of the purchase price) will be required to be provided by the buyer for the exchange of contracts.

Exchange of Contracts

Contracts will be exchanged through solicitors, creating a legally binding agreement for both parties and, usually, with a fixed completion date. The deposit will be forwarded to the seller’s solicitor at this stage.  If the buyer needs to insure the property from exchange, this will need to be put in place.

Between Exchange and Completion

The Transfer which will effect the change of ownership of the property from the seller to the buyer will be signed, as will any legal charge or mortgage and other documentation which is required by the buyer’s lender.  The buyer’s solicitors will carry out the necessary pre-completion searches. A final statement detailing the balance of the purchase price and other expenses, including Stamp Duty Land Tax and Land Registry fees payable, will be provided, and the buyer must provide cleared funds to their solicitors ready for completion.  If a lender is involved, arrangements for the finance being provided to be paid by the lender will also be made.

Completion

On completion, the balance of the purchase price will be paid to the seller’s solicitor.  On receipt, the Transfer will be dated and the keys to the property will be handed over to the buyer.

Post Completion

After completion, the buyer’s solicitor will pay any Stamp Duty Land Tax liability and then apply to register the change of ownership at the Land Registry.

Our team of commercial property experts will collaborate with you every step of the way, from negotiating terms to completion, ensuring to the best of its ability that the process is as seamless and straightforward as possible.

Please contact one of our team today to see how we can help.