Commercial property law, whether you want to buy or sell business premises is complex, therefore, it is essential that you know your stuff.
What is commercial property :
Commercial property, put simply, is the process of transferring a business property title from one company or person to another. Although it has similar comparisons to residential conveyancing it is a much longer and complex process.
The process will differ for individuals buying and selling commercial properties and here is what you can expect for both options.
Buying a commercial property :
So, you’ve found the right property at the right price for you, it is at this stage you should consider and take care of the legal procedures. The important steps you will encounter include:
- Your solicitor should investigate the title to the premises you want to buy and conduct all relevant pre-contract searches
- Enquires should be raised as a result of searches to the CPSE forms
- You will then receive a letter along with all documents you will have to sign, such as a contract, Stamp Duty form and, if applicable, mortgage deed
- Exchange and completion date scheduled
- Transfer Deed prepared by your solicitor for approval by sellers’ solicitor and pre-completion searches.
- Purchase payment transferred
- And, finally, your solicitor will arrange payment of any Stamp Duty required and register the agreement with the Land Registry
Selling a commercial property :
There are various stages involved in the conveyancing process of selling a business, the most important include:
- Once the legal title of your property has been investigated by the buyer’s solicitor (including any lease if your property is on a lease-hold) your solicitor will prepare the Contract for Sale.
- You will then have to complete the required Commercial Property Standard Enquiries (CPSE) forms. A comprehensive set of enquiries sent on behalf of buyers that help them to understand the property they are acquiring.
- Details will be required of fixtures and fittings in the premises and other relating information such as an Energy Performance Certificate
- Further enquiries from the buyers’ solicitor may be raised at this stage.
- Exchange of contracts will be completed with deposit transferred from the buyer, making the transaction legally binding.
- Transfer Deed provided and arrangements made to discharge any mortgage to the premises.
- Completion will take place and remaining balance paid by the buyer. The buyer is now entitled to vacant possession of the premises
Throughout the buying and selling process, it is important to bear in mind that either party can pull out without penalty until the exchange of contracts. In most cases, the length of time the final transfer will take to complete can be six to eight weeks. However, timescales can vary on each individual case.
If you’re looking to buy or sell a commercial property you should always seek expert help. Talk to the guys at www.thelawhouse.com.
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