Key stages - commercial property purchase

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