2nd October 2024
Selling a commercial property can be a complex and time-consuming process, especially if you are not familiar with the legal requirements and procedures involved. Whether you are selling an office, shop, warehouse, or any other type of commercial premises, you need to plan ahead and seek professional advice to ensure a smooth and successful transaction.
In this blog, we will explain some of the key steps and considerations involved in selling your commercial property. We will also highlight how our experienced commercial property solicitors at Myers & Co can help you achieve your goals and protect your interests along the way.
Before you put your property on the market, you need to make sure it is in good condition and complies with all the relevant regulations and standards. This may involve carrying out repairs, maintenance, cleaning, and renovation to enhance its appeal and value. You should also obtain any necessary certificates or reports, such as an Energy Performance Certificate (EPC), a gas safety certificate, or an asbestos survey, depending on the age and type of your property.
You should also gather all the important documents and information relating to your property, such as the title deeds, planning permissions, leases, rent reviews, service charges, insurance policies, and utility bills. These will help you provide accurate information to potential buyers and their solicitors and avoid any delays or disputes during the conveyancing process.
Once your property is ready for sale, you need to find a suitable buyer and agree on a fair price. You may want to use the services of a commercial estate agent, who can help you market your property, arrange viewings, negotiate offers, and liaise with the buyer and their solicitor. Alternatively, you may have an existing tenant or a business contact who is interested in buying your property.
When you receive an offer, you should consider not only the price, but also the terms and conditions of the sale, such as the completion date, any fixtures and fittings included, and any special arrangements or requirements. You should also check the financial position and credibility of the buyer, and whether they need to secure a mortgage or sell another property before completing the purchase. If you are happy with the offer, you can accept it verbally or in writing, but bear in mind that it is not legally binding until contracts are exchanged.
As soon as you have agreed a sale, you should instruct a solicitor to handle the legal aspects of the transaction. Your solicitor will prepare and send a draft contract and a legal pack to the buyer’s solicitor, containing all the relevant details and documents about the property. The buyer’s solicitor will then conduct searches and enquiries and raise any queries or issues with your solicitor. Your solicitor will answer these queries and negotiate any amendments to the contract until both parties are satisfied.
When everything is agreed, you and the buyer will be asked to sign the contract. Once the parties are in a position to do so, the seller’s solicitor and buyer’s solicitor will then formally exchange contracts. This is the point where a completion date is agreed and the sale becomes legally binding. If either party fails to complete on the agreed completion date, they are likely to face significant financial and legal penalties.
On the completion date, your solicitor will receive the balance of the purchase price from the buyer’s solicitor and confirm that the sale is complete. At this point, you will need to vacate the property and hand over the keys to the buyer or their agent.
At this point, any mortgage will be redeemed, and your solicitor will send your signed transfer deed and title documents relating to the property, to the buyer’s solicitor. The buyer’s solicitor will then register the transfer of ownership with the Land Registry and pay any stamp duty land tax due. Your solicitor will also account for any apportionments of rent, service charges, or other outgoings, and send you the net proceeds of the sale.
If you find yourself with a commercial property query, acting quickly gives you the best chance of success. Our commercial property solicitors can help advise on the best course of action to take while protecting your legal position every step of the way.
Whether you are buying, selling, leasing, or developing a commercial property, we can provide you with clear and practical advice, tailored to your specific needs and objectives. We can also help you with any related matters, such as business sales and purchases, commercial contracts, employment law, or dispute resolution.
If you would like to talk to one of our specialist commercial property solicitors, please call us free on 01782 525025 or make an enquiry via our contact form.
