Whozoo tips #35 - What is the process of selling my commercial property in the UK?

Published: 06/02/2024

Selling a commercial property in the UK involves a series of steps. Here's a general overview of the process:

Appoint Professionals:
•Estate Agent: Consider hiring a commercial property agent to help market and sell your property. They can assist with property valuations, marketing strategies, and negotiations.

Solicitor or Conveyancer:
•Hire a solicitor or conveyancer to handle the legal aspects of the sale. They will prepare the necessary legal documents and ensure a smooth transaction.

•Obtain a professional valuation of your commercial property. This can be done by a chartered surveyor or a commercial property agent. The valuation helps determine a realistic selling price.

Energy Performance Certificate (EPC):
•Ensure that you have a valid EPC for the property. It's a legal requirement to have an EPC before marketing the property for sale. If you don't have one, you'll need to commission an assessment.

Prepare Property Information:
•Work with your solicitor to compile essential property information, including title deeds, planning permissions, leases, and any other relevant documentation. This information will be provided to potential buyers during the due diligence process.

Market the Property:
•With the help of your estate agent, develop a marketing strategy to attract potential buyers. This may include creating property listings, online and offline advertising, and conducting viewings.

Receive and Evaluate Offers:
•Once offers start coming in, your estate agent will present them to you. You can negotiate terms, such as the sale price, deposit amount, and completion timeline.

Accept an Offer:
•Once you are satisfied with an offer, formally accept it. At this point, the buyer may pay a deposit, and the solicitors of both parties will be instructed to begin the conveyancing process.

•The conveyancing process involves legal and administrative work to transfer ownership. Your solicitor will handle tasks such as property searches, reviewing contracts, and addressing any legal issues that may arise.

Due Diligence:
•The buyer's solicitor will conduct due diligence, reviewing the property information you provided and addressing any concerns or questions they may have.

Exchange of Contracts:
•Once both parties are satisfied, and all legal and financial matters are in order, contracts are exchanged. At this point, the sale becomes legally binding, and a completion date is set.

•On the agreed-upon completion date, ownership is transferred, and the remaining funds are transferred from the buyer to the seller. Keys are handed over, and the sale is complete.

•Your solicitor will handle post-completion tasks, such as notifying relevant authorities of the change in ownership and disbursing any remaining funds to you.
Throughout the process, effective communication with your estate agent, solicitor, and the buyer's representatives is crucial.

It's also recommended to seek professional advice at each stage to ensure a smooth and legally compliant transaction.