Commercial Property
Commercial property transactions require more than conveyancing
Buying or selling commercial property involves considerations that often extend well beyond the transfer of the land itself.
The contract, existing leases, the intended use of the property, due diligence, GST, finance and the structure through which the property is held can all affect the transaction.
At Watt & Severin, we assist clients with commercial property purchases and sales from the early stages of the transaction through to settlement.
We take the time to understand not simply the property being bought or sold, but the commercial purpose behind the transaction.
How can we help?
Buying Commercial Property
Contract advice, due diligence and conveyancing for commercial property acquisitions.
Selling Commercial Property
Preparing the transaction, contract advice and conveyancing for commercial property sales.
Buying Commercial Property
Understand what you are buying — and why
A commercial property acquisition should be considered in the context of what you intend to do with the property.
You may be acquiring premises from which to operate your own business, purchasing an investment property with an existing tenant or acquiring property as part of a broader commercial transaction.
Those circumstances can affect the contract, the investigations that should be undertaken and the issues that need to be considered before you become committed.
Where possible, we recommend obtaining advice before signing the contract.
Contract review and negotiation
Commercial property contracts can contain detailed provisions dealing with matters that do not ordinarily arise in residential transactions.
We can review the proposed contract, explain its terms and identify issues that may require negotiation or further investigation.
Depending upon the transaction, this may include considering:
due diligence conditions;
finance;
GST and the proposed GST treatment of the transaction;
existing leases and tenancy arrangements;
title and registered interests;
access, easements and other property rights;
settlement arrangements;
special conditions; and
other matters relevant to the proposed acquisition.
Where taxation, accounting or financial advice is required, we can work alongside your accountant, financial adviser or other professional advisers.
Due diligence
Due diligence should be directed towards the particular property and the reason you are acquiring it.
For an investment property, the existing lease and the strength of the tenancy arrangements may be fundamental to the value of the acquisition.
For owner-occupied premises, the suitability of the property for the intended business use may be critical.
The appropriate investigations will therefore vary from transaction to transaction.
We can help identify the legal due diligence relevant to the proposed acquisition, review the information obtained and advise you about issues that arise.
Existing leases
Where commercial property is being acquired subject to a lease, you are not simply acquiring the land and buildings. You are also taking on the position of landlord under an existing contractual relationship.
The lease should therefore form an important part of the legal review.
We can consider the lease, variations and other relevant documentation and advise on matters affecting the landlord and tenant relationship.
Ownership and transaction structure
How commercial property is acquired can have consequences beyond the conveyance itself.
Before the contract is signed, you may need to consider the entity that will acquire the property and how the acquisition fits with your broader business or investment arrangements.
We can work with your accountant and other advisers where necessary so that these matters can be considered before contractual commitments are made.
From contract to settlement
Once the contract is entered into, we manage the legal and conveyancing process through to settlement, monitor important contractual dates and deal with issues that arise during the transaction.
Considering a commercial property acquisition? Talk to Watt & Severin before you sign.
Selling Commercial Property
Prepare the legal side of the transaction early
Commercial property sales benefit from preparation before the property is placed under contract.
The existence of leases, GST treatment, title issues and other arrangements affecting the property may need to be considered when preparing the contract and negotiating the transaction.
Involving us early gives us an opportunity to understand the property, identify issues and help prepare the legal documentation before a buyer is ready to proceed.
Preparing and reviewing the contract
The contract should reflect the property being sold and the commercial agreement reached between the parties.
Depending upon the transaction, we may need to consider:
the proposed sale terms;
GST;
existing leases and tenancy arrangements;
title and registered interests;
inclusions and exclusions;
existing mortgages or securities;
special conditions;
due diligence provisions; and
settlement requirements.
If there are unusual features of the property or transaction, addressing them before the contract is signed can reduce the likelihood of disputes or unexpected issues later.
Selling tenanted commercial property
Where a property is sold subject to an existing lease, the tenancy is an important part of the transaction.
A prospective buyer may want to examine the lease, rental arrangements and other documents relating to the tenancy as part of its due diligence.
Preparing that material early can help the transaction proceed more efficiently once a buyer is identified.
We can review the relevant documentation and advise on legal issues associated with the sale of the property subject to the tenancy.
Managing the transaction through to settlement
Once the contract has been signed, we manage the conveyancing process, contractual dates and settlement requirements.
Where issues arise during due diligence or before settlement, we advise you about your contractual position and the available options.
Thinking about selling commercial property? Talk to us while you are preparing for sale.
Commercial property and business often overlap
Commercial property transactions frequently sit alongside other commercial arrangements.
A property acquisition may be connected with the purchase of a business. A property sale may occur alongside the sale or restructure of a business. A lease may need to be negotiated as part of either transaction.
Where those issues overlap, it is useful to consider them together rather than as unrelated legal tasks.
Our Property and Business & Commercial services allow us to look at the transaction in its broader commercial context and identify where the different arrangements need to work together.
Involve us early
The earlier we understand the proposed transaction, the more opportunity there is to identify issues before contractual commitments are made.
If you are considering buying or selling commercial property, talk to us about the property, the proposed transaction and what you are trying to achieve.
Talk to Watt & Severin about your commercial property transaction.