Commercial Conveyancing is the process by which commercial properties or land is bought and sold with the transactions carried out by a commercial property solicitor. This is a brief summary of how the process works for commercial properties from both a buyer and seller perspective.
If you’re purchasing a commercial property your solicitor will do the following:
-Investigate the title to the property you’re buying and carry out any pre-contract searches.
-Upon receipt of the title and searches the draft contract from the Seller’s Solicitor the Solicitor will raise any necessary enquiries resulting from the searches and answers to CPSE Enquiries (Commercial Property Standard Enquiries). If you are having Mortgage Finance the mortgage offer will be checked and the Transfer Deed drafted for approval, if applicable. There may be VAT to be considered on a commercial transaction and also the involvement of Landlords and Managing Agents and lease terms if not a Freehold property.
-Once there are no issues with any enquiries a report letter will be sent to you along with the documentation for signature; this may include the Contract, Transfer Deed or Lease, Stamp Duty Form and Mortgage Deed if applicable.
-When your Solicitor has received your signed documents and has a cleared deposit your Solicitor can then agree with you and the Seller a date for completion and exchange contracts. At this stage the transaction is deemed as legally binding.
-The Solicitor will provide you with a financial statement to enable you to provide the balance monies due to complete the transaction.
-Stamp Duty will be paid if necessary and if required, the transaction will be registered with the Land Registry.
If you’re selling a commercial property your solicitor will do the following:
–After the legal title of your property has been investigated, including any Lease if a Leasehold property, the Contract for Sale will be drawn up and you will need to complete any necessary CPSE enquiry forms.
–You may also need to supply details of fixtures and fittings.
-The Buyers Solicitors will usually draft a Transfer Deed if necessary and raise enquiries, including if Leasehold, questions regarding the Lease and VAT, if applicable.
-Assuming there are no issues and your Buyer and their Solicitor is satisfied with the answers to their enquiries and they are in receipt of a cleared deposit you will be able to agree a date for completion and exchange contracts. At this stage the transaction becomes legally binding.
-Final completion takes place and you will receive the balance of the purchase monies from the buyer.
The above is a whistle-stop guide to the commercial conveyancing process and your solicitor is there to ensure that everything goes as quickly and smoothly as possible. At Anthony Stockton Solicitors we have many years experience of managing commercial conveyancing transactions so if you need any assistance then please do not hesitate to contact us.