Whether you are choosing to sell your commercial property or invest in expanding your portfolio/business, it’s important to know how long the process could take. For instance, knowledge of the timeframe will help you plan for your company’s next expansion. Having helped many parties complete commercial property transactions in a timely fashion, Toomey Legal are qualified to advise on what to expect when it comes to the time investment.
Stages involved in a commercial property sale
Once the buyer has done the necessary research and declared an interest in the commercial property, the commercial property transaction process can begin. It’s important to bear in mind that no agreements will be legally binding until the exchange of contracts has taken place and a completion date has been set. These initial stages might involve instructing a commercial property solicitor to contact the other party’s legal team and issue a Letter of Engagement. It’s also here that a draft contract may be drawn up to be reviewed. These steps, as well as all of the following ones, are all areas of commercial property conveyancing where Toomey Legal can help.
Pre contract
The buyer’s solicitor examines the proposed contract and gathers various pieces of information. At this stage, surveys may be carried out to ascertain the condition of the property and its features. It’s the results of these property surveys that can be used to renegotiate the terms included in the contract.
Exchange of contracts
Once both the buyer and seller are satisfied with the price agreed, along with any other inclusions such as the commercial lease, contracts are exchanged and signed. It is also at this stage that insurance policies must be put in place.
Completion
Completion occurs when the seller’s solicitor confirms that the appropriate transfer of money has taken place and been received. This will result in the keys to the property being handed over.
Post-completion
Conveyancers will then conduct any necessary duties to confirm transfer of ownership. This usually includes obtaining title deeds, updating registration with the Land Registry, and paying Stamp Duty Land Tax.
Read our ‘Guide to commercial property conveyancing’ for more information.
How long does it take to sell commercial property?
Selling commercial property can take anywhere from two weeks to an entire year. A rough timeframe could be predicted based on the property and the parties involved. Although it’s often the case that the time it takes to complete the sale of a commercial property is influenced by many different elements.
Factors that can influence the commercial sale timeframe
Selling a commercial property typically takes longer than selling a residential property. This is mostly due to the fact that most commercial buildings are larger than residential ones, and so require more thorough checks. Although these factors can also play a role:
- Documentation: Arguably the most influential factor in any property sale is the speed at which relevant documentation is filled out and sent between the parties involved. This is an unescapable piece of admin, so ensuring you have a responsive and accurate conveyancing expert to support your sale will help prevent delays.
- Aspects of the property: Every commercial property will have different aspects which could elongate the process of a sale. Generally, the larger the property is, the longer it will take to survey. The use and location of the property could also have an impact.
- Buyer’s intentions: Depending on what the buyer plans to do with the property, it may result in certain stages taking longer due to additional documentation. For example, if a buyer has to obtain planning permission during sale negotiations.
- Demand: If the market for your chosen type of commercial property is very competitive, it could cause the price to inflate and add steps to the conveyancing process.
Experts in commercial property sales
The key takeaway is that the best way to minimise the time between ‘declaration of interest’ and ‘completion’ is to choose your timing and get the support of a trustworthy solicitor. Wasted time is often detrimental for both buyers and sellers. Our team will help make sure all the relevant documentation is together, correct, and sent with haste. Contact Toomey Legal today to get started with fixed fee conveyancing.