Sellers can take proactive steps to gather some of the information that potential buyers are likely to require and, by so doing, grease the wheels of the sale process. These steps include:
1. Deeds
For properties that are unregistered, it is a good idea to locate where the physical deeds are held. It is not always the case that they are conveniently placed with a firm of solicitors or a mortgage lender. Identifying where deeds are held can help to avoid unnecessary delays.
2. Maintenance of registered title
Where a property is registered at the Land Registry, has the register of title been kept up to date? For corporate sellers, has any change of company name been notified to the Land Registry? Are there any redundant leases noted against the property’s title which need to be removed? Most buyers will expect a property’s register of title to be current. A seller’s lawyer should be able to identify and address any such issues but being able to provide an early “heads-up” can help to speed things up, particularly if any Land Registry applications are required to tidy the legal title.
3. Boundaries
Checking the boundaries of the property on the ground marry up with the Land Registry plan (if the property is registered at HM Land Registry) or the deeds (if it is unregistered). Has there been any encroachment by neighbours? Have any boundaries been adjusted? Are there any informal arrangements with neighbours? It is important that such matters are discussed with your lawyer at an early stage, so that any potential problems can be considered and any solutions identified.
4. Tenanted property
If a property is let, it is a good idea to be on top of the numbers. Sellers should be prepared to supply payment history for rents payable, including any insurance and service charge (if applicable) and to provide current balances for any rent deposits held. Sellers may also need to consider serving notices if the intention is to sell with vacant possession.
5. Legal pack
A seller’s lawyer will be responsible for assembling a package of legal information concerning the property. Sellers are encouraged to get a head start with this process by gathering various property specific information, which will form part of the legal pack, including:
- Commercial energy performance certificate. Sellers should ensure that the property has a valid EPC certificate. It is unlawful to let any commercial property with an EPC rating below F.
- Details about utilities, business rates and any other costs a buyer will be liable for.
- Asbestos survey (if required).
- VAT documentation (such as evidence of an opted or exempt status).
- Fire safety report.
- Building insurance.
- Health and safety report.
- Gas and electric compliance documents.
- Lease agreements (if applicable)
Ward Gethin Archer’s dedicated team of commercial property specialists have extensive experience in handling all manner of sales both locally and nationally. If you are thinking about selling your commercial property, any member of the team would be pleased to have a free initial chat to guide you through the legal process.
This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek our specific advice.
