Key stages - commercial property purchase

There are a number of stages involved in a commercial property purchase for both vendors and purchasers, below is a brief and indicative guide about what is involved at each stage on behalf of the parties. The outline below is for a typical purchase but not all transactions follow this set approach. If you need advice in relation to a commercial property transaction our solicitors have years of experience acting for vendors and buyers, call us on 0203 816 9303 for a free, no obligation initial chat with one of our legal advisors.

loading staff

Stage one - Heads of terms

Vendor

  • Appoint professional advisors (agents, valuers, solicitors)
  • Analyse property details and assess how to address any issues
  • Consider restrictions/limitations to sale. For example, third party consent, banking issues
  • Purchase Energy Performance Certificate (EPC)

Purchaser

  • Appoint professional advisors
  • Assess funding options

Stage 2 - Pre-contract

Vendor

  • Carry out searches - optional. Having the searches in place will allow greater control when working out the time limits for exchanging contracts. Searches typically take 3- 8 weeks depending on the location and nature of the property
  • Make available the pre-contract/storage legal pack, including: reply to enquiries, prepare title documents, draft contract, EPC and other related documents to the property being sold
  • Obtain title deeds from mortgage holder and indicative redemption statement.
  • Negotiation of contract

Purchaser

  • Investigate title and reply to enquiries
  • Conduct surveys
  • Preparation of reports
  • Negotiation of contract
  • Carry out searches if vendor has not supplied them
  • Reporting to mortgagee on investigation

Stage 3 - Exchange of contracts

Vendor

  • Committed to the sale

Purchaser

  • Deposit paid and committed to purchase
  • Arrange insurance if appropriate

Stage 4 - Pre-completion

Vendor

  • Completion statement prepared including mortgage redemption figures
  • Prepare replies to requisition on title
  • Signing of completion documents

Purchaser

  • Carry out pre-completion priority searches
  • Transfer of completion monies
  • Carry out land registry searches
  • Completion statement prepared
  • Request mortgage advance and ensure balance of purchase price is deposited with purchaser's solicitor

Stage 5 - completion

Vendor

  • Mortgage discharged
  • Send completion documents to the purchaser
  • Balance of purchase money sent to the vendor

Purchaser

  • Completion monies paid to vendor's solicitor
  • Buyer now has responsibility
  • Ensure insurance is in place

Stage 6 - Post-completion

Purchaser

  • Stamp Duty Land Tax
  • Land Registry application
  • Deeds
4.7out of 10
4.7 score on Trustpilot Based on count 806

We're Great

It is our business to deliver legal services that work for our clients, and you can trust our specialists to take care of things on your behalf.

Our Trustpilot reviews

Employee ownership trusts - the alternative way of selling your business

It can take years of hard work to build a successful business, and so exiting that business can be a very difficult decision for an owner to make. For others who have an exit strategy in place finding a buyer may be difficult, particularly in certain...

Read more

Twitter commercial

@CommercialLLP

Stephensons to relocate its St Helens office

The national law firm, Stephensons, is to move into new premises in St Helens. The firm will close its current office on Corporation Street in the town on Friday January 17th 2020 and move to a new purpose built office space in Century House on Hardshaw...

Read more

Commercial property reorder

  • David Baybut
  • Kate Bullen
  • Jonathan Chadwick
  • ​Chris Graves
  • Louise Hebborn
  • Julie Ball
  • Paul Davies
  • Jonathon Waterhouse
  • Jessica Charnock
  • Gary Jackson
  • Heather Bottomley