Conveyancers are a critical component of every commercial real estate transaction. Although you are not legally bound to engage the services of a conveyancer, their input can significantly ease the property transfer process. Below is an article discussing how a conveyancer can help you as you buy commercial property.
Property conveyancers have an in-depth knowledge of the local real estate market. Therefore, they can conduct a market survey to establish the viability of your project. This survey should inform you of the following:
- The current income of the building
- Market gaps that you could exploit to increase the income of the building. For example, if the building is used as an office, you could incorporate co-working spaces
- The risks of buying the property. For instance, an upcoming development could force clients out of the property
- The building's appreciation in case you want to sell the property or use it as collateral for a loan in the future
Legalities Of The Property
The conveyancer will assess the building to ensure that it meets all the legal requirements. For example, they will check the title registration and examine the best way to transfer the title to your name. For instance, if the building is registered to a company, all directors must be willing to sell the property. The professional will evaluate land maps to determine the property's boundaries and any easements on the property. They will also ask for certifier's certificates to ensure the construction works meet the requirements of the local building code.
Condition Of The Property
The professional will order a building inspection to answer the following questions:
- Does the property have the required essential safety measures? All commercial buildings in Australia must have these measures to minimise damage in case of a fire
- Does the property have adequate amenities? These may include the parking lots, washrooms and recreational areas
- What is the structural integrity of the building? Salt damping, shifting foundations, warped slabs and cracked pillars could compromise the safety of the building
- What is the energy efficiency of the building? It will help you reduce maintenance costs
Your conveyancer will use the market survey and property inspection reports to appraise the property. More often than not, the asking price will be higher than the property's market value. As such, your conveyancer will use a wide range of conveyancing tactics to compel the owner to reduce the asking price.
When buying commercial property, your conveyancer will conduct a market survey, assess the legalities and condition of the property, appraise and negotiate the property. Reach out to a professional for more information about conveyancing.