Howdy! I'm Dan Smith and I live with my wonderful family in Perth. This is my legal blog which aims to look at every part of the legal system. I should point out that i'm not a lawyer myself. However, my good friend Stan has been representing people in court for many years. I find Stan's work fascinating and I love asking him questions. I have even done a bit of my own research into the legal system. I decided to pull everything together here so I could organise my thoughts while also providing useful info for others. Thanks for checking out my blog!
Would you want to invest in commercial real estate? If you do, you will need a conveyancer's help when buying the property. Below is an extract discussing how conveyancing will help you when buying commercial property.
Property Appraisal
Commercial properties are expensive. Therefore, your conveyancer's primary objective will be to assess whether you will get value for your money after buying the property. The process involves in-depth due diligence to establish the current market price of the property and any factors that could affect the price, appeal and use of the property in the foreseeable future. For instance, your conveyancer will want to assess proposed developments in the area. For example, a larger building could attract retailers; hence you might have to reduce the rent. On the other hand, a proposed road could reroute people that visit the premises, hence you risk losing business. Changing government regulations could force your anchor tenant out of your premises. In this case, all the other businesses could be forced to close shop. Your conveyancer will assess these possibilities to ensure you do not suffer any liabilities in the future.
Property Documentation
The lawyer will assess property documentation to establish the following:
Condition Of The Property
The conveyancer will ask for a building inspection to determine whether the property meets the required standards. There is a wide range of laws that govern the construction of commercial buildings. For example, each building must have essential safety measures to prevent fire risks. The conveyancer will also assess the construction blueprints vis-à-vis the local building code.
Terms Of Sale
Your conveyancer will negotiate the terms of sale on your behalf. For example, they could ask the seller to renovate the property before the closing date. Additionally, they will ensure that essential aspects of the property are included in the sale. This could include the building name. Remember, some sellers will have rights over the name. Changing the building name could significantly affect the flow of business. Since commercial property deals take longer to close, the conveyancer will ensure the contract of sale prevents the seller from adjusting the price or selling the property to another buyer.
When hiring a commercial conveyancer, assess their licence and specialisation to ensure they are experienced in the sale of commercial property in your state.
Share26 April 2021
