Commercial Property Sales and Purchases
We have extensive experience of acting for both sellers and buyers of commercial properties.
Commercial conveyancing is often more complicated than residential conveyancing but we are happy to guide you on your particular transaction.
Particular distinguishing characteristics from residential conveyancing are that:
- Unlike with residential conveyancing which in the vast majority of cases will involve vacant possession being delivered, commercial investments may involve tenants remaining in situ. If that is the case, a careful review of the lease terms of that tenant will be required in advance of contacting to ensure that a purchaser is aware of the terms that the tenant will continue to remain in the property post-purchase.
- The planning status of the property will be an important part of the due diligence to establish what commercial use is permitted under the existing planning laws.
- It will need to be established if there are any rates arrears on the property and steps taken if there are to ensure that such does not become the obligation of the new purchaser.
- Stamp duty is presently chargeable at 7.5% on commercial purchases, unlike residential conveyancing which gives rise to a 1% rate up to €1million and 2% thereafter.
- We are prohibited from granting undertakings in favour of banks to, amongst other things, arrange the execution of a mortgage on a commercial property, so if a purchaser is buying with a mortgage, the bank will need to appoint its own solicitors to deal with registering their mortgage.
- VAT may arise on the purchase which will need to be considered and advised on by a purchaser’s accountants to ensure there are no additional financial surprises on closing.
- If the property is held by a company, it may be that a seller wants to sell the company that owns the property rather than the property itself, which will involve considerations of what other assets or liabilities (existing or contingent) may exist in that company as part of a wider due diligence exercise.