Contracts for the sale of commercial property can be complex and often include warranties given by the seller to the buyer. If those warranties are inaccurate, the buyer may have rights to terminate the contract or claim damages.

Proper investigation of matters such as tenancies, permitted use, council requirements and compliance with relevant legislation is critical. Addressing these issues before entering into the contract helps reduce risk and supports a smoother path to settlement.

Searches can reveal notices or issues affecting the property. For example, a local authority may have issued a show cause notice for non-compliance with a regulation or local law.

If the seller does not address the issue and properly disclose it in the contract, the buyer may become responsible for complying with the notice. Without conducting searches, the seller may be unaware of the issue at the time of entering into the contract.

Buyers may commit to a purchase before confirming the most appropriate purchasing entity, particularly in time-sensitive situations such as auctions. After entering into the contract, it may become apparent that a different entity would be more suitable for taxation or asset protection purposes.

In some circumstances, it is possible to change the purchasing entity. However, this must be carefully structured to avoid unintended consequences, including double transfer duty. We can advise on the appropriate structure and prepare the necessary documentation to ensure compliance with Office of State Revenue requirements.

A buyer who becomes the new landlord may not automatically receive all of the original landlord’s rights. This is because certain contractual rights do not “run with the land” and are not enforceable by a successor in title.

When purchasing a commercial property with existing leases, it is important to ensure that all relevant rights are properly assigned or transferred. Without this, the buyer may not have the benefit of key contractual rights previously held by the seller.

As part of the conveyancing process, we ensure that these rights are appropriately dealt with so the buyer can rely on them following completion.