Commercial property strongly features in our services. We are instructed by a wide range of commercial clients including sole traders, partnerships, retailers, hoteliers, companies, institutional sector majors and financial institutions. Whether you are looking to buy or sell a commercial property, at Mitchells Roberton our commercial property team are here to smooth the way for you.
Purchasing a Commercial Property
When buying a commercial property there are a number of points to consider and we can provide you with guidance throughout, as getting it right is of significant importance for a business to have a true commercial advantage.
We can give advice on the following:
- What is the best way to finance the purchase?
Usually clients would be looking for a commercial loan from a bank. A bank will normally lend if it believes in the profitability of the business but the terms of any loan should be carefully scrutinised by a legal adviser who will make sure that you fully understand all the conditions of the loan. The bank will also expect to be granted sufficient security to be able to get their money back if things go wrong. You may be asked to put your own home up as security but you must ensure you obtain legal advice before doing so. We at Mitchells Roberton can help.
- How does the conveyancing procedure work?
The basic structure of a commercial property purchase is much the same as a residential purchase. Once you have found the commercial premises you wish to purchase we would prepare and submit a written offer on your behalf. The seller’s solicitor will then usually issue a qualified acceptance of the offer deleting or qualifying some of the many legal conditions contained in the offer or adding in some of their own conditions on behalf of the seller. These qualifications will be carefully gone over with you as the purchaser and they will either be accepted or further modifications will be made in writing by us on your behalf. When the conditions of the offer and acceptance are finally agreed the missives are said to be concluded and there is a legally binding contract in place with neither the purchaser nor the seller being able to withdraw without penalty. The title deeds ,searches and property reports will be examined by us and the content explained to you. We will prepare the deed for the seller to sign transferring ownership of the premises to you. We will obtain funds from the bank and any monies you are contributing and pay the purchase price to the seller’s agent on the date of entry. The keys will then be released to you. We will pay any stamp duty due and we will register the title deed in your favour in the Land Register of Scotland.
- Are the commercial premises fully certified for its intended use?
In a commercial transaction it is extremely important to check that all the relevant planning consents are in place in respect of the proposed use of the premises. There are a number of different planning permissions needed for different uses of commercial premises such as shops, food and drink outlets, storage and distribution, hotels or business amongst others and we can check that the relevant permission is in place or can assist in applying for a change of use
- Should the title be taken in the name of an individual or a limited company?
Businesses may be formed as a partnership, a franchise, a sole trader or a limited liability company for example and which entity is used will depend on a number of factors. The over-riding purpose of taking title in a certain name is to protect business owners from personal liability. By taking expert legal advice on avoiding personal liability, owners can protect their personal assets from being at risk of any creditors of the business.
Selling a Commercial Property
Clients selling a commercial property want to make sure that the best possible price is obtained and that the sale transaction proceeds without any last minute hitches or even the deal falling through. Our experts can assist here. The conveyancing procedure for the sale of commercial premises is again more or less the same as for a residential sale and the mirror image of the procedure explained above for a commercial purchase. Our IT systems and up to date case management allow our business lawyers to act quickly as is necessary in nearly all commercial property work.
If we can help please contact one of our experts.