How to speed up a commercial property transaction

commercial property transactionWe are in a really shaky market at the moment if you are selling or granting leases of a commercial property transaction.   Potential buyers and tenants are very thin on the ground and have lots of options.  They will not wait whilst the conveyancing process grinds it way along.   So what is the secret to speeding up the legal process?  In three words,  Killer Sales Pack.

This is a bit like the recently scrapped Home Information Pack.   It should be put together in conjunction with your solicitor because he knows precisely what he is going to be asked for.

It may involve a bit of expense but it literally means you can call the shots and demand that people exchange and complete in weeks or even days if you want.

Commercial Property Transaction

So what is in this Killer Sales Pack?

Well, a draft contract for sale and a Land Registry transfer very carefully drafted and with no careless errors or omissions.

A Land Registry compliant plan with a north point, drawn to a recognised scale and with sufficient identifying features on it that the Land Registry can plot the boundaries of the property on to the Land Registry Filed Plan.

A full set of searches.  Now this is the expensive bit but it really does save time.  So it should contain an up to date local authority search, a drainage and water search, an environmental desktop search and a chancel check.   However, this is just the starting point.  If the local search refers to recent planning permissions or notices include copies of these in the pack.  Try to pre-empt the standard enquiries.  Remember the solicitor acting for your buyer or tenant is looking to raise some enquiries.  If you pre-empt everything he could possibly ask for, he is practically redundant.

If the property has been altered include the necessary planning permissions, building regulation approvals and other approvals eg. Evidence of compliance of relevant planning permissions.

Include an asbestos report, fire risk assessment and energy performance certificate.  Not having these documents will just delay the whole commercial property transaction.

Replies to CPSE enquiries with all relevant enclosures eg. VAT elections, copies of the buildings insurance policy.   Go through the replies with your solicitor and get the replies really accurate and informative.

You could into the realm of Ultra Killer Sales Pack by including a title report prepared by your solicitor in which all of the work has been done for the buyer’s solicitor.   All he has got to do is read it and tell his client to sign on the bottom line.

You will soon flush out time wasters.  You could insist on only dealing with  buyers with evidence of funds ready to apply to the purchase.  This might be a certificate of finance from their banker or accountant.  You as seller are back in the driving seat and you can impose really strict time limits because you know there is nothing to ask for.  Of course, they will think of something that is not in the pack but there is only so much you can ask when you have prepared such a pack.

So think about it.  Killers Sales Pack .  You want to speed up the commercial property transaction you know what to do.

Leave a Reply

Dominic Beeton, Solicitor
Get Discount
Keywords