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Your commercial property is a significant asset, so if you decide to sell it, you must do so correctly. However, selling commercial property can take time and cost money, so it is essential to have a property solicitor to help you with commercial property transactions. This article will explain three reasons why you need an experienced commercial property solicitor when selling commercial property.
What is Commercial Property?
There is a difference between a commercial property and a residential property. Commercial property is a building in use or purpose for business activities rather than living in.
In this sense, commercial conveyancing transactions could include the sale of:
- office buildings;
- shopping centre;
- industrial units;
- warehouses; and
Why Do I Need a Property Solicitor When Selling Commercial Property?
You must have a property solicitor assist you when selling our commercial property. There are many reasons for this, and we look at three of these below.
1. A Property Solicitor Can Prepare Documents
A key reason why you need a property solicitor when selling your commercial property is to prepare documents for the property sale. At the start of the conveyancing process, a commercial property owner will instruct their solicitor.
The first document a conveyancing solicitor may help you with is the heads of terms for the retail property sale. Heads of terms typically include:
- who the buyer and seller are;
- what price they agree on for the property sale;
- any sale conditions; and
- what the time frames are for the sale to complete.
A lawyer will prepare your sales pack for the commercial property. This is an important document which includes:
- the sale contract for the commercial transaction; and
- proof that you own the property.
2. Legal Advice
A key reason why you, as a commercial property owner, should use a property solicitor is that they can give you legal advice on the property transaction. While this may seem like an apparent reason, it is an essential one. Selling a commercial property is a significant move both in terms of parting with your asset as well as the size of the financial transaction. It is, therefore, essential that you know what you are doing.
Your conveyancing solicitor can advise you on other legal issues that may affect your property sale. They can also advise you on other professional areas you may need advice on. This ensures that you cover all angles of your commercial property sale.
For example, a property solicitor can:
- suggest you speak to a tax specialist to ensure that the financial transaction when selling your commercial property is best suited to your tax situation; and
- provide some advice on planning and construction if it is relevant to your retail property sale.
3. Consulting and Representing
Asking a property solicitor to assist you with selling your commercial property means that you have someone to consult on your behalf and represent you. Selling a commercial property does not mean you only liaise with the property buyer. Your property solicitor can represent you and consult for you further than this.
One reason you have a property solicitor when selling your commercial property, for example, is for VAT purposes. Although most commercial property sales are exempt from VAT, there are exceptions to this. These include if:
- the commercial property is under three years old; and
- you decide to include VAT under a VAT election.
Your property lawyer can ensure the VAT in the commercial property is correct. They can do this by consulting with their tax adviser and ensuring that the sale contract they prepare reflects this.Continue reading this article below the form
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Commercial properties are buildings that are for business activities. If you have a commercial property you wish to sell, you need a property solicitor to assist you in the property transaction. You should obtain a conveyancing solicitor’s advice to:
- prepare essential documents when selling commercial property;
- provide you with legal advice when carrying out the property transaction; and
- consult and represent you during the transaction, such as on tax matters.
If you need help selling your commercial property, LegalVision’s experienced leasing lawyers can assist 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 for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page.
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