Expert Legal Guide To Commercial Property Deals
Both companies and individuals regularly instruct the Commercial Property Law department at Bennett Griffin LLP to discuss all types of commercial property requirements.
This encompasses a broad range of transactions, such as:
- Commercial Property Conveyancing
- Commercial Property Disputes
- Financing and Secured Lending
- Site Acquisition and Development
- Taking and Granting of Leases
- Commercial Lease Renewals
We also work with a number of developers on both the acquisition of a site, certain aspects of the development, and the subsequent sales or leases of the finished plots.
Several similar steps will need to be taken in each transaction, and we have set out below a simplified walkthrough of what to expect in a typical commercial property transaction:
Understanding the Property (Due Diligence)
Full property due diligence is likely to be carried out when acting for a buyer, tenant or on the refinance of property.
This would include reviewing the title to the property, carrying out searches, requesting replies to standard enquiries, and raising property-specific enquiries.
All information obtained will be collated, and we will report to you to ensure that nothing will negatively impact your use or ownership of the property.
When acting for a property seller or landlord, all of the property information needs to be provided to the other party, and responses to their enquiries will need to be given.
It is important that information is not inaccurate or withheld, and we could advise you on what information needs to be provided.
Drafting and Reporting on Documents
Whether this be a contract, transfer deed, or other document format, this will need to be drafted, negotiated and agreed upon between the parties.
When considering the documents’ contents, the results of the property due diligence, the parties’ requirements, and any previous terms agreed to as set out in Heads of Terms or a Memorandum of Sale must be considered.
Moving Forward (Exchange and Completion)
Once all parties are in agreement on the draft documents and all property due diligence has been fully carried out, then final copies of the documents will be circulated for signing.
The way documents are signed depends on the type of document.
Some simply need to be signed on behalf of the party, some need to be signed in the presence of a witness, and some need to be signed in the presence of a lawyer.
We will advise you accordingly in each case.
Prior to exchange and completion, we would prepare the relevant financial statements to set out all payments required to move forward to the next step.
We would then carry out any last-minute searches as may be necessary.
Once all parties have signed the documents, funds have been made available, and the final search results are back, we will follow your instructions to deal with the exchange and/or completion.
The Final Steps (Stamp Duty Land Tax and Registration)
Stamp Duty Land Tax (“SDLT”) has to be considered on all transactions where an interest in the property is acquired, including purchases and leases.
As part of the transaction, we will review the SDLT position and provide a basic calculation using the information available.
If the transaction is particularly complex or there is something unusual in your or the property circumstances, then we would advise you to take specialist tax advice.
Many transactions also require registration at the HM Land Registry.
Again, this depends on the type of transaction as well as the documents used and we would be happy to advise you accordingly. In the case of a mortgage or refinance to a company, it is also likely that documents will need to be registered with Companies House.
Every transaction is unique, and while this overview covers the basics, your situation might require additional consideration. For tailored advice, feel free to contact our experts, who will be happy to discuss your specific commercial property needs.