Conveyance of commercial properties is much like that of residential properties, only a bit more complicated. Commercial properties are used for retail and manufacturing businesses. A property that is currently being used for one business can be modified and used for another business. A residential property may also be purchased for commercial activities. These are very complicated issues that make commercial conveyancing tedious. Mistakes can easily arise during conveyancing especially if a solicitor is not involved. Solicitors know the rules of conveyancing and are capable of making even the most complicated transactions easy.
Commercial Property Ownership
Ownership of commercial properties vary. You can own property as a freeholder, landlord, a leaseholder or a tenant. The work that goes into every of these forms of ownership also vary. An owner of commercial property is likely to use his property for business. He can also lease the property to a businessperson. The landlord and his tenant must come up with a suitable tenancy agreement. It is very easy for a tenant to misuse a property that has no tenancy agreement because the property does not belong to him. A good agreement prevents the incidence of negligence on the part of the tenant. It is the role of solicitors to draw good tenancy agreements. The issues of property agreements and contracts apply to all forms of property commercial ownerships.
Stages of commercial conveyancing
The primary stages of conveyancing commercial properties and residential properties are the same. Once a seller receives an offer, he contacts an appropriate buyer. The seller and his solicitor then draw a draft of a contract. A draft outlines terms of sales that the seller expects from the transaction. The seller’s solicitor sends this draft to the buyer who reviews it and makes any additional enquiries. A mutually agreed contract is drawn and a completion date set. Completion date marks the end of engagement between a buyer and a seller. It is the day the seller pays the price of the property and assumes ownership. Conveyance continues after completion. Conveyance after completion involves property registration and payment of taxes.
A lot goes on before conveyance is fully completed. A buyer’s solicitor must ensure that the details of the property are accurately researched. The very first commercial property research is ownership research. A conveyance must verify the owner of the property. He must find a copy of the title deed and send this to the buyer. Property ownership research is conducted at the land registry. The land registry has a record of all properties within its jurisdiction, and copies of title deeds.
Commercial Property Standard Enquiry
Conveyance of commercial properties can be delayed by matters arising during the transaction. Conveyance of residential properties is also usually delayed but by different reasons. One of the delays in conveyance of commercial properties is caused by the need to fill Commercial Property Standard Enquiry (CPSE) form. This form gives a detailed overview of property from the perspective of a seller. CPSE does not negate the need for conveyance research property valuation. Questions in CPSE forms are mostly general but could also be specific. They are answered by sellers and do not necessarily provide a professional overview of properties. However, they are necessary components of commercial conveyance.