When selling commercial property privately, there are a few goals you should have in mind. You want to make a return on your investment and possibly close the deal quickly.
Selling a commercial property can be a time-consuming and intricate process. It’s necessary that you have:
Possessing familiarity with commercial property sales law; Being aware of the going rates for similar properties in the area; Being aware of the opportune times to sell.
You should also be aware of any personal expenses, such as those associated with hiring an estate agent, moving, mortgage prepayment, arranging financing, and paying potential capital gains tax.
We at esalesinternational can advise you on the best course of action.
Ways to Sell an Industrial Building
Have a conversation with the customer:
As a first step, make sure you’re always accessible to your buyer. All the terms that have been agreed upon will be included in a Heads of Terms document, which will also include the price, the dates for exchange and completion, the names of all parties involved, and the names and contact information for their respective solicitors.
Attorney for the Seller:
Send the finalized Heads of Terms to your attorney, and they will retrieve your property’s title documents from the Land Registry, complete the necessary Commercial Property Standard Enquiries (“CPSEs”), and create the purchase agreement. Your chosen attorney will also facilitate the transfer of funds and the signing of contracts. Our team of commercial law attorneys is here to help you every step of the way.
Solicitor for the Buyer
The contract package, which includes the title documents, CPSE responses, and the draft contract for sale, will be submitted to the purchaser’s attorney.
Do Your Research
The buyer’s lawyer also needs to do their own due diligence on the property. In most cases, they will investigate the following and report back to the buyer:
- Documentation of any property surveys that have been performed.
- Specifically requested searches.
- Proof of ownership paperwork.
- Sales Agreement in Draft Form.
In response to any concerns or questions presented by the buyer’s legal team, your attorney will address them.
Once all of the necessary checks and balances have been made, the paperwork can be finalized and agreed upon. Contracts for sales and transfers are among the documents involved.
A deposit of 10% is due before contracts can be exchanged by the buyer. Following the completion of the exchange, the agreed upon completion date shall become final and binding.
A transfer of money from the buyer’s solicitors to your solicitor on the completion date will finalize the sale.
It is the buyer’s legal right to take possession of the property once completion has occurred, at which time you must turn over the keys to the buyer. Once the transaction is finalized and the mortgage is paid off, the sale is considered finalized and you are given a discharge.
Is there a better way to make this happen?
For starters, get your house in selling shape. It must be brought to a “state” where it may be sold.
Then, have all the information commercial real estate buyers will need readily available. You can avoid wasting time and money by doing this before putting your home up for sale.
Planning, Authorized Use, Fire Safety, Business Rates, and Energy Performance Certificate Information (EPC). Any information you have about the health and safety of the area, such as the existence of asbestos, must also be provided.
Following the procedures outlined above, a buyer will submit you a Commercial Property Standard Enquiries form with their queries. It is crucial that you have complete knowledge of your commercial property. You can get assistance with this from your attorney.
Set your selling strategy in motion.
When deciding how to sell your business property, you can pick from a few different routes. There are many different ways to sell, including at auction, through a property buying company, with a commercial real estate agent, through a lottery, or even on your own.
Although auctions are a quick option for some sellers, it’s possible that they aren’t the ideal fit for you. You’ll have to pay entry fees and a cut to the auctioneer, who will also take a cut of the proceeds from the sale of your property. It can cost you more than using a real estate agent.
Although a real estate agent that specializes in commercial property is recommended, the choice is ultimately up to you. Weigh the benefits of each marketing strategy against their drawbacks before making a final selection.
To ensure you fully comprehend the implications of selling your business property in the manner you are contemplating, we recommend consulting with an expert in commercial law.
Enhance the property’s curb appeal
Prepare your home in a way that will appeal to potential buyers. There may be some value in spending a little money to improve the aesthetic value of your property if it is in disrepair. Make it more presentable so that potential buyers are interested.
Get in touch to find out how we can help you sell your commercial property right now.