What is commercial property?
Released On 4th May 2022
Are you interested in commercial property for your business or simply curious about what it is? Here we'll go over everything you need to know about commercial property in simple terms, just like we do at Amicus Law, so you can follow along every step of the way.
What is a commercial property?
If you've been thinking of expanding your business and moving into new premises then you'll already be looking into the exciting realm of commercial property. This is property that is intended to generate profit - like a shop. It typically refers to buildings that house businesses, but it can also refer to land used for profit. This can often include retailers like:
- Office spaces
- Healthcare
- Hotels
- Resorts
- Gyms
- Restaurants
Once you have decided to take the leap and sell, buy or lease a commercial property, you can get in touch with one of our friendly commercial property solicitors. They'll be on your side every step of the way and will guide you throughout the whole process.
A commercial property solicitor will manage all of the legal aspects, both contentious and non-contentious, including the sale, purchase or lease of a commercial property. Our legal team will advise you on everything from buying and selling commercial property to development projects and refinancing, and you’ll have access to our entire team of lawyers if you encounter any legal disputes where we’ll be on your side ready to resolve any issues straight away. You don’t have to worry about anything with AmicusLaw, we’re on your side.
What happens next?
Buying commercial property
If you’re looking to buy a commercial property and have already found what you’re looking for and agreed on a price with the seller but aren’t sure about what happens next – you’ve come to the right place!
You will be ready to proceed with the purchase once you and the seller have agreed on the Heads of Terms, which outline the main points of the transaction, and you have appointed a solicitor. The sellers’ solicitor will send you a contract package, which will usually include a draft sale contract, title documents, replies to CPSEs and an energy performance certificate. After receiving the contract package, your solicitor will conduct a due diligence check on the property in accordance with your and the lender’s requirements (if you are obtaining a loan). This will also include property searches, a local authority search, water and drainage search and an environmental search. Any necessary enquiries will be made after your solicitor has reviewed everything, and you will be guided through every step with AmicusLaw, so don’t worry if it all starts to sound a little complex!
After that, the loan documents will be reviewed, and the sale contract and transfer terms will be negotiated and agreed upon with the seller’s solicitor. Contracts will then be exchanged and any outstanding payments will be completed. And the final step is completion! You will be able to collect the keys and start your next chapter.
Selling commercial property
Alternatively, if you are selling your commercial property the steps are similar but not the same. Firstly the Heads of Terms will be carried out and solicitors agreements will be arranged. Title documents will be obtained by your solicitor and the contract will be drafted with the title information prepared. Your solicitor will send a contract package to the buyer’s solicitor, and once received, the buyer’s solicitor will conduct due diligence. Then the terms of the sale contract will be negotiated and agreed. If you have a secured loan on the property, your solicitor will contact your lender and request a settlement figure. And then you’re almost there! The contracts will be signed and exchanged, followed by a pre completion process where the solicitors will make sure all conditions have been met between both parties. Finally, you’ll arrive at the finish line and the deal will be completed!
Get in touch with our commercial property team to discuss your commercial property queries. Our head of department James Armstrong advises landlords, tenants, landowners, business owners and developers on a wide range of commercial property work, including buying and selling commercial premises, leasing commercial premises, refinancing, development projects and business sales and acquisitions. And he agrees, “the best part of the job is enabling his clients’ businesses to grow and flourish”. AmicusLaw will guide you through everything from start to finish and be on your side every step of the way.
Get in touch today to find out more information from our friendly team at AmicusLaw.
