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 01616 966 229 for a free, no obligation initial chat with one of our legal advisors.

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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

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