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Commercial Property - Seller's Guide
Every seller’s objectives, regardless of the size or value of the property, are simple – for the sale to proceed smoothly, efficiently and without delay. Whilst there is always potential for unforeseen problems, the seller has the ability to minimise such problems to enable achievement of these objectives by following the suggestions below;
Prepare a checklist
It would be of real benefit to prepare a list of matters considered to be of importance in the sale. Clearly, the solicitor will do the same but having both solicitor and seller carry out checklists will help in getting a binding contract and will minimise the risk of any matters being overlooked until the day before completion.
Ask for the Bank’s consent
If the property is subject to a secured loan, such as a mortgage, the consent of the security holder will require to be obtained to release the property from the secured loan. Make sure at the outset that consent will be given.
Put your ‘house’ in order
Depending on the use and size of the property, it is common for inspections to be carried out by a range of public authorities to assess compliance with environmental, health, hygiene or fire regulations. If any obvious defects or non-conformities are known about, remedy these at the outset.
Have building alterations documents to hand
These may require the approval of the local authority or another relevant body. Since such alterations will usually be apparent to the purchaser’s surveyor, it is best to obtain outstanding building documentation before inspection.
Consider tax implications
The seller should bear in mind whether Value Added Tax is payable on the sale price or whether any capital allowances apply to plant and machinery installed in the property.
Selling part of the property?
If only selling part of the property, consider arrangements for services, common parts of the property and access and repair rights and obligations.
Collate all documentation
Make sure you know where to find all documentation relevant to the sale, as the purchaser’s solicitor will usually ask for sight of them: e.g. licences, building warranties, repair guarantees, insurance papers etc.
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