Navigating the commercial property conveyancing process is essential when buying, selling or leasing commercial property for business purposes. Unlike residential conveyancing, this area of law demands specialist knowledge due to the legal and financial complexities involved in commercial property transactions. From negotiating commercial leases to drafting contracts, the process encompasses a range of legal issues that must be precisely managed.
At Watermans, our commercial conveyancing services are tailored to meet the unique needs of business clients. We provide clear, strategic legal support throughout the conveyancing process, helping clients protect their investment and comply with all relevant legal requirements.
Explore our guide to commercial conveyancing that simplifies the entire process.
Understanding Commercial Conveyancing: What It Involves
Commercial conveyancing focuses on the legal process of transferring or leasing property for business purposes. This may include purchasing or selling commercial buildings, negotiating lease agreements, or managing properties undergoing development.
The process involves more nuanced legal considerations than residential conveyancing. Factors such as zoning laws, planning permissions, complex lease agreements and property ownership structures require careful attention.
Key components of a typical commercial transaction may include:
- Drafting and negotiating the sale and purchase contract
- Conducting commercial property searches, including local authority searches, environmental checks and a fire risk assessment
- Reviewing commercial property standard enquiries and responding accordingly
- Ensuring all legal documents are in place, including the transfer deed
- Liaising with the buyer’s solicitor and the seller’s solicitor
- Handling tax liabilities, including stamp duty land tax (known as Land and Buildings Transaction Tax in Scotland)
- Coordinating the completion date and formal transfer of ownership
Whether you’re leasing, buying or selling commercial property, it’s important to understand the documentation and legal aspects involved.
When You Might Need Commercial Conveyancing Services
A commercial conveyancing solicitor can provide legal expertise for any kind of commercial property deal. While commercial leasing involves renting a commercial property, it still requires a legally binding contract that requires expert scrutiny. Legal guidance is just as vital for tenants, buyers and sellers alike. You may need this service if you’re:
- Selling commercial property such as offices, warehouses or retail units
- Buying a commercial property for investment or operational use
- Entering or renewing commercial leases for business premises
- Applying for a commercial mortgage
- Developing land or existing commercial buildings
- Converting residential properties into commercial premises
For leasehold transactions, legal advice ensures the lease terms are clearly understood and legally sound. This is especially important when dealing with intricate lease agreements, as legal support ensures the interests of both the landlord and the tenant are protected. Similarly, commercial and residential conveyancing for mixed-use developments requires expert navigation of overlapping legal considerations.
Our team provides straightforward advice on what the commercial conveyancing process involves. Contact us today.
Common Types of Commercial Properties
Commercial properties encompass various real estate used for business purposes. Understanding the different types helps investors, buyers, and tenants make informed decisions. Here are the most common types.
Retail Properties
Shops, shopping centres, food markets and other retail outlets where businesses sell goods and services directly to consumers. Conveyancing for retail properties often involves considerations related to foot traffic, parking rights and signage permissions.
Office Spaces
Office buildings and business parks house companies and professional services. Office space leases vary in complexity, and factors such as location and amenities can impact the conveyancing process.
Industrial Properties
Warehouses, factories and distribution centres used for manufacturing, storage or logistics are considered industrial property. Conveyancing for industrial properties may involve environmental assessments and compliance with zoning regulations.
Leisure & Hospitality Venues
Hotels, restaurants, pubs, cafes and gyms fall under this category. These properties often require licenses and adherence to specific health and safety regulations.
Healthcare Facilities
Medical centres, dental surgeries and nursing homes are examples of healthcare properties. Due diligence is essential due to stringent health regulations and standards.
Mixed-Use Developments
Properties that combine residential and commercial uses, such as apartments above retail shops. Conveyancing for mixed-use developments requires expertise in both residential and commercial property law to navigate the overlapping legal aspects.
Land for Development
Vacant land intended for commercial development falls into this category. Conveyancing considerations include planning permission, environmental checks and infrastructure agreements.
How the Commercial Conveyancing Process Works: Step-by-Step Overview
Understanding what happened during a commercial property transaction is key to protecting your interests. The process can vary in complexity depending on the property type, lease structure, or nature of the sale. Here’s how the process generally unfolds:
Initial Instructions & Due Diligence
Your solicitor gathers relevant information about the transaction. If buying, they confirm the purchase price, review funding options like a commercial mortgage, and identify your desired completion date.
Due diligence is a critical step in the early stages. The buyer’s solicitor will carry out:
- Commercial property searches (title, environmental, local authority)
- Review of commercial property standard enquiries
- Examination of any planning permissions, rights of way and restrictive covenants
- Inspection of any existing lease agreements
For sellers, your solicitor will prepare a draft contract and provide a commercial conveyancing report tailored to the transaction. They will also ensure necessary documentation is in place, including proof of legal title, Energy Performance Certificates (EPCs) and relevant insurance details.
Contract Negotiations & Exchange
Next, both parties negotiate the contract terms. This phase involved addressing complex lease agreements, financial aspects and liability for repairs or service charges. Once agreed upon, contracts are signed, and the exchange of contracts takes place. At this point, the transaction becomes legally binding.
If the property is leasehold, terms such as rent reviews, subletting permissions, and lease renewals must be agreed upon. The process is more involved than residential properties, where leases tend to be shorter and simpler.
Pre-Completion Requirements
Before completion, the buyer’s solicitor ensures that:
- All legal documents are in order
- Lenders (if any) are prepared to release mortgage funds
- The land and buildings transaction tax return is ready
- The transfer deed is signed
Simultaneously, the seller’s solicitor confirms receipt of funds and readiness to transfer ownership. A final fire risk assessment or property inspection may also be required, particularly for other commercial buildings, such as factories or mixed-use developments.
Completion & Legal Transfer
On the agreed completion date, funds are transferred, and the buyer officially takes ownership. At this point, the transfer of ownership is completed, and control of the property changes hands.
The buyer’s solicitor will then:
- Submit the LBTT return and pay the tax
- Register the new owner with the Land Registry
- Ensure any legal obligations associated with the lease or freehold are noted
Post-Completion & Ongoing Legal Requirements
Following completion, the buyer must ensure all post-completion requirements are met. This includes registering property boundaries, managing lease terms, and fulfilling any legal obligations set out in the contracts.
A comprehensive commercial conveyancing report is provided to summarise the transaction and advise on any ongoing legal requirements or risks.
We simplify complex processes, so you can move forward with confidence. Get in touch with us for more information on the commercial conveyancing process.
Frequently Asked Questions About Commercial Conveyancing
What’s the difference between residential and commercial conveyancing?
The main difference lies in the complexity and purpose of the transaction. Residential conveyancing typically involves individuals buying or selling homes, with relatively straightforward contracts and fewer legal complications.
Commercial conveyancing deals with properties used for business purposes, often involving higher financial risk and several key steps to legal ownership.
What should I consider when buying a commercial property?
When purchasing a commercial property, it’s important to assess the legal and practical implications of the transaction.
Start by considering zoning and planning regulations, which determine how the property can be used. Then, evaluate the physical condition of the building and any potential liabilities that may arise.
You should also examine existing lease agreements and consider whether the property will support your long-term business goals. You should also evaluate funding options, such as a commercial mortgage, check legal titles and review all the property’s legal documents.
What are typical commercial conveyancing fees?
Commercial conveyancing fees depend on the value and complexity of the property, the type of property, and the extent of the legal documentation.
You’ll need to consider legal fees, which cover aspects such as conveyancer fees and transaction management. The property’s value also affects the overall conveyancing costs, as well as its location. If it’s located in high-demand areas, it can command a higher price. Lastly, the lease type needs to be included in the overall costs.
How long does commercial conveyancing take?
Timeframes vary depending on the complexity of the transaction. Simple sales may be completed in four to eight weeks. Leasehold transactions or purchases involving properties that are undergoing development may take longer due to the presence of nuanced legal considerations.
Do you still have more questions about commercial conveyancing? No problem! We’re always ready to answer any questions. Contact us.
Useful Links for Property Conveyancing
To help you move forward confidently, we’ve compiled some helpful resources and related services. Whether you’re still exploring your options or ready to take action, these links provide valuable information and access to the support you need.
- Commercial lease solicitors – Scotland
- Commercial lease – Edinburgh mobility solutions
- Sunshine on Leith – why property owners should consider Leith for their investments
- How to find the right solicitor or estate agent through social media
- Properties for sale
- Remortgaging
We handle the legal aspects of property law, and you reap the benefits.
Watermans: Trusted by Buyers and Sellers in Commercial Conveyancing
Watermans provides straightforward legal advice for all aspects of commercial conveyancing. Our dedicated team understands the complexities and important legal process of commercial property transactions. We work hard to protect the sellers’ and buyers’ interests, ensuring both parties have a fair and secure transaction process.
From coordinating property inspections to managing lease agreements, we offer comprehensive support tailored to your needs. We offer:
- A deep understanding of Scottish property law
- Offices across Dundee, Glasgow and Edinburgh
- Advice tailored to your business and property goals
- Services that extend beyond conveyancing, including valuations and estate agency support
Commercial property deals can be complex, but with Watermans in your corner, the process becomes clear and manageable. We can handle the legal intricacies so you can focus on what matters most—your business.
Our services extend beyond conveyancing processes. We are expert solicitors in personal injury law as well as wills, trusts and succession.
Your commercial property conveyancing starts here. Connect with Watermans for trusted expertise.