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As a commercial property owner, you may choose to sell your property to a commercial property buyer. As such, you must understand the crucial aspects of the sale process beyond merely considering the sale price. One important aspect is the importance of engaging a good property solicitor or conveyancing lawyer specialising in commercial real estate. This is crucial because each property has its unique style, requiring careful attention to your specific needs and preferences. This article will outline three essential points you must know when selling commercial property to prospective buyers.
1. What Are the First Steps After Agreeing Terms When Selling Commercial Property?
After agreeing on terms with a commercial property buyer, you, the seller, must take some critical steps. First, engage a qualified property solicitor to carry out the transaction. Next, actively gather information about your commercial property, including:
- any planning documents;
- fire risk assessment paperwork; and
- safety reports such as for gas and electricity.
Your solicitor will then create a sales pack for your buyer. To assist them, you must inform them of any issues about your commercial property, including disputes and insurance claims. A sales pack typically includes:
- a contract of sale;
- proof that you left the property by providing your title information; and
- CPSE replies to any questions asked about your commercial property in terms of the industry it serves.
2. Do Property Owners Need an EPC When Selling Commercial Property?
It is a legal requirement to obtain an Energy Performance Certificate (EPC) before selling your commercial property, just as you would for leasing it.
However, there may be exceptions depending on the property type. Your solicitor can confirm whether an EPC is necessary for your specific sale.
3. How Long Will It Take Me to Sell My Commercial Property?
You are likely wondering how long it will take to sell your commercial property. This is a crucial question, and understanding the factors that influence the timeline is essential. Unfortunately, there is no one-size-fits-all answer, as every retail property sale differs. The specific circumstances of your transaction, including any buyer-imposed conditions in the sales contract, will determine the timeframe.
For example, during commercial property sale negotiations, your buyer may inform you they need planning permission to finalise the sale. This could be because they intend to redevelop your commercial building and the surrounding land. This will result in a lengthier and more complex contract drafted by your solicitor.
Additionally, expect delays between the exchange and completion of the sales contract. This timeframe allows your buyer and their solicitor to thoroughly examine the agreement and any conditions linked to the planning permission.
Although property sale transactions vary in time, your solicitor should be able to estimate the timeframe at the outset of the sale process.
This cheat sheet outlines what you should be aware of in your lease agreement.
Key Takeaways
If you own a commercial building, there may come a time when you wish to sell it. It is essential to understand that selling commercial property goes beyond the sale price. Engaging a qualified solicitor specialising in commercial real estate is essential to navigating this process and creating the sales pack. This pack will require information about your property, such as a contract of sale, your title information, and CPSE replies. Additionally, it is important to understand that an Energy Performance Certificate (EPC) is mandatory for most sales. Finally, the timeframe for selling can vary depending on buyer conditions and planning permissions. However, your solicitor can guide you through this process and provide an estimated timeline.
If you need help understanding the essential points when selling commercial property in the UK, contact our experienced leasing lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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