Commercial conveyancing is the legal process of transferring the title of a property from the previous owner to the new owner. Although that sounds simple, the process involves a lot of attention and requires the completion of six steps.
The 6 Steps of Commercial Property Conveyancing
Step 1 – Contract of Sale
The first step of commercial property conveyancing is the execution of the contract of sale. The preparation of the contract of sale is the responsibility of the seller’s solicitor or real estate agent. The document includes the property description, price, warranties, and other terms and conditions. The buyer’s solicitor reviews the contract of sale, negotiates any changes and then it is signed by both the seller and buyer. This is known as the exchange of contracts.
In some Australian states, there is a second part to this step. It is a cooling-off period that allows a buyer to withdraw from the contract. By doing so, the buyer forfeits 0.25 percent of the purchase price without penalty. It is also not uncommon for a seller to request the buyer issues a Section 66W Certificate. This allows for the shortening or elimination of the cooling-off period thereby speeding up the process.
Step 2 – Searches
The next step in the process involves the review of searches and the removal of conditions. The buyer usually takes on the task of searching the title, zoning, and strata and conducting a historic search. All of these conditions must be met before moving further in the process.
Step 3 – Financing
Commercial financing, if required, is typically the start of the conveyancing process. As this can take time, solicitors that specialise in conveyancing law can speed this up.
Step 4 – Pre-Settlement Matters
If you are buying commercial properties, you have the right to have your agent arrange for a pre-settlement inspection. This requires the seller to ensure that the property is clean and vacant at the time of settlement. If you, as the buyer, do not like the condition of the property, you can delay the deposit of settlement until the seller rectifies the situation. The contract can break quickly if this step becomes a hurdle for both parties.
Additionally, this step includes the preparation of figures. However, the final figures may not be known until settlement day. The solicitors for both parties must be kept current on all costs during the transaction and just before settlement, the buyer will prepare the final figures and complete the cheque details.
Step 5 – Settlement
The settlement involves the buyer, seller, and lender gathering the legal papers. Once this is complete, the payment of the purchase price is made.
Step 6 – Post-Settlement Matters
The final step in the process. This is when keys, security codes, and access devices become property of the new owner. The change of ownership is shared with relevant authorities, which is usually the responsibility of the buyer’s lender to handle.
The Difference Between Commercial and Residential Conveyancing
Commercial property conveyancing is similar to residential property conveyancing with a few very distinct differences. First, both involve the transfer of freehold property from one owner (the seller) to another (the buyer). The difference between them comes from the complexity of the transaction in commercial property conveyancing. Commercial transactions often contain additional considerations. They may include leases, property use, tax implications, and the due diligence process.
Why You Should Use A Commercial Property Solicitor
As mentioned above, commercial property conveyancing is a complicated process that is best left for the experts to sort out on your behalf. Conveyancing solicitors like GKS Law have the experience and expertise in conveyancing law. They know what is required and how to resolve it. It is because of this that a commercial property solicitor will be the best partner you can have to help you navigate the conveyancing process. Not only can they offer you legal advice, but conveyancing solicitors Redcliffe can work out any of the other details that may pop up.
In Conclusion
Commercial property conveyancing requires the skill and experience of a commercial property solicitor. The lawyers at GKS Law understand the intricacies and complex layers that make up conveyancing law. This makes them more than well-equipped to assist you with all of your commercial property conveyancing needs. As simple as it sounds that conveyancing is where a property title moves from a seller to a buyer, there is a lot more to the process than that. Plus, fixing errors that occur during the process can be expensive. To avoid this, your best solution is working with GKS Law, your local conveyancing solicitors in Brisbane.