Every savvy investor wants to make a profit on their commercial property sale. However, selling can take weeks or even months to complete, depending on the market conditions, demand and the price of your property.
If you want to sell your commercial property faster in 2022, there are certain steps you’ll need to take to prepare for the sale and ensure you receive maximum return on investment quickly.
Here’s an outline of the documentation you’ll require and the steps you’ll need to take.
Documentation
When selling your commercial property, you’ll need to provide several key documents to speed up the sale and help you avoid unnecessary complications or headaches.
Documentation List
● Property deed and Land Registry title documents
● Use Classes and associated lawful use certificates
● Copies of planning permission and building regulations documents
● Commercial Energy Performance Certificate (CEPC)
● Asbestos Survey (for buildings of a certain age)
● Risk Assessment and maintenance record
● Commercial Property Standard Enquiries
Below we go into further detail regarding each document required.
Planning and building regulations documents
You should give any planning permission certificates, building regulation certificates or certificates of lawful use to the buyer. This includes:
● Replies to CPSEs (Commercial Property Standard Enquiries)
● Energy Performance Certificate
● Asbestos Survey
● Fire Risk Assessment
You’ll also need to provide any information regarding air conditioning maintenance, health and safety, electrical or gas test certificates and information about business rates or costs the new owner would be liable for.
Replies to CPSES (Commercial Property Standard Enquiries)
The CPSE is a set of questions that you need to answer before selling your commercial property. These help the buyer review the property and identify any potential issues. You must answer these questions honestly and accurately. If you provide inaccurate answers, you could be sued for misrepresentation
Energy Performance Certificate
An EPC (Energy Performance Certificate) helps the buyer understand the energy rating and CO2 consumption of your property. Supply them with a copy and you’ll help speed up the selling process.
Asbestos Survey
If your building is of a certain age, you must check for asbestos and produce a management plan to reduce risks.
Fire Risk Assessment
Any commercial property owner should have carried out a fire risk assessment. This should also be given to the prospective buyer.
The process of selling: 5 key stages
Congratulations! You already have a potential buyer for your commercial property and you want to push through the sale as quickly as possible. Follow these steps to ensure the process runs smoothly.
1. Draft a Contract
You should first send a draft contract to the solicitor of the interested party. Your solicitor will take care of this and include any other essential documents you’ve provided.
2. Receive a redemption statement
If you have a mortgage secured against the property, your lender will check whether the sale price will cover the remaining debt. You’ll receive a Redemption Certificate if all parties are satisfied.
3. Documentation Enquiries
Before you can move forward, your buyer’s solicitor will review the draft contract and may ask questions regarding the paperwork. These need to be answered before you can exchange contracts and proceed with the sale.
4. Exchange of Contracts
Once all parties are satisfied, you can exchange and sign contracts with the buyer.
5. Payment and completion
Next, the buyer will need to pay a deposit to secure the property, then settle the remaining balance. This money will be sent to your mortgage lender (if applicable) then you will receive the remainder.
Want to sell your commercial property and make maximum profit in 2022? Contact our team of expert solicitors today.
