Selling a freehold commercial property is more complex than most residential sales. This is because there are often obligations that come with the property that have to continue to be met or wrapped up in such a way that the new owner is no longer responsible. Many obligations in regard to, for example, upkeep of a building, are passed from owner to owner.
A commercial lease solicitor in London, like Saracens Solicitors, is advised for any commercial property sale. At the least, they will provide some of the services detailed below and can often end up saving their clients a lot of time, money and hassle.
A well-drafted Head of Terms
The ‘Head of Terms’ precedes the sale agreement and lays out the basic framework agreed upon by the buyer and seller. It means that the eventual paperwork should accurately reflect the wishes of both parties and avoids complex and expensive re-writing. A good commercial lease solicitor in London will be able to draft an accurate and clear Head of Terms.
Warranties and indemnities
Warranties and indemnities are different types of agreement reached between buyer and seller. The difference between the two types can have a significant financial impact should either party wish to claim based on a breach of contract. A commercial lease solicitor in London can help decide which type is appropriate to each case and, in the case of warranties, explore potential limits to liability.
Negotiations as to the purchase price and restrictive covenants
Negotiation is a skill in itself and, when it is backed up by extensive legal knowledge, it can lead to a significantly more advantageous deal for the client, in the right circumstances. An experienced solicitor may be able to move a purchase price, for example, based on a sound knowledge of the consequences of something raised by a survey. They can use the details for bargaining leverage.
Similarly, when it comes to restrictive covenants, a thorough knowledge of the implications can tip the balance either way when a client is planning to sell or purchase a property. Some covenants can have a financial impact or contain restrictions the way a building can be used.