Commercial property conveyancing is a complex process that involves the transfer of ownership of a property from one party to another. This process is essential for businesses looking to buy or sell commercial properties in Australia. Below, this article will explore the steps involved in commercial property conveyancing, providing you with a comprehensive understanding of what to expect during the process.
Hiring a Conveyancer or Solicitor
The first step in commercial property conveyancing is to hire a qualified conveyancer or solicitor to handle the legal aspects of the transaction. These professionals have the expertise and experience to ensure that the process runs smoothly and that all legal requirements are being followed. It’s essential to choose a conveyancer or solicitor who has expertise in commercial property transactions to ensure that they’re well-versed in the intricacies of this particular area of law.
Once you have engaged a conveyancer or solicitor, they will begin the pre-contract stage. This involves conducting thorough due diligence on the property to identify any potential issues or concerns. This may include reviewing the title, conducting searches with local authorities and obtaining any necessary planning permissions or building regulations approval. During this stage, the conveyancer will also draft the contract for the sale of the property. This contract will outline the terms and conditions of the sale, including the purchase price, deposit amount and completion date.
Exchange of Contracts
Once the pre-contract stage is complete, and both parties are satisfied with the terms of the sale, the exchange of contracts can take place. This is a critical stage in the commercial property conveyancing process, as it legally binds both parties to the transaction. The buyer will generally be required to pay a deposit at this stage, which is usually 10% of the purchase price. The conveyancer will then hold the signed contracts in escrow until the completion date is agreed upon.
During the pre-completion stage, the conveyancer will continue to liaise with the relevant parties to ensure that all necessary steps are taken to prepare for completion. This may include arranging for any outstanding searches or enquiries to be completed, ensuring that any required funds are in place and dealing with any last-minute issues or concerns that may arise. The conveyancer will also prepare a completion statement, which outlines the final balance to be paid by the buyer on the completion date.
The completion date is the day on which the ownership of the property is legally transferred from the seller to the buyer. On this day, the balance of the purchase price is paid, and the keys to the property are handed over. The conveyancer will also register the transfer of ownership with the relevant land registry and ensure that any necessary stamp duty is paid.
After completion, there are typically a few final tasks to be completed by the conveyancer. These include ensuring that all outstanding fees and charges are paid, providing the buyer with a copy of the updated title deeds and notifying any relevant parties of the change in ownership.
By understanding the steps involved in commercial property conveyancing, you can ensure that your transaction runs as smoothly as possible, ultimately resulting in a successful outcome for all parties involved with minimal stress and hassle.