Auckland Lawyer for Selling Commercial Property – Expert Guidance in Property Transactions

Anything to do with commercial property is complicated, far more so than residential real estate. The financial stakes are also much higher than for most private house transactions. Therefore, it is vital that you work with an expert Auckland lawyer for selling commercial property.

Why Hire an Auckland Commercial Property Lawyer?

If you are selling any commercial property in Auckland, you will have many issues to address. Some of these are legal, others involve finance, and taxation. A skilled Auckland lawyer for selling commercial property will be able to carry out most of these tasks for you, or have associations with other experienced professional service firms to help.

 

Let’s take a look at some of the issues involved.

 

The Contract

Given the complexity of many commercial property transactions, lawyers often carry out negotiations for their client. Use the skill and knowledge of your lawyer before you commit to an agreement.

 

Once there is a verbal agreement between the two parties, your commercial property sales lawyer will draft and review any contract documents for you. Most contracts in Auckland used the Law Society Sale and Purchase Agreement. This makes it easier for the lawyers involved as there are nor hidden clauses. However, either side of the transaction is at liberty to insert specific clauses to meet their needs. Your lawyer will of course review any clauses that the other party’s lawyer may have included. They can also suggest clauses that you might want to insert for your benefit and to protect your interests.

 

Due Diligence

There is somewhat less due diligence for the seller than the purchaser but there will still be some aspects for your lawyer to consider and review.

 

For example, what are your obligations to any tenants in the building? This will primarily revolve around lease agreements, but there may be other issues. Existing disputes with tenants or neighbours will need to be resolved before a buyer will be willing to commit themselves.

 

Finance

There are numerous finance issues to consider when selling any commercial property.

 

If there is a mortgage over the premises, then that will need to be settled upon the sale of the building. Your lawyer will get a settlement figure from the lender or lenders. If the proceeds of the sae are not sufficient to cover the outstanding mortgage debt, they will advise their client so that they can arrange additional finance. Without full and final settlement of the mortgage, the lenders will not relinquish their security over the premises. That means that the buyer’s lawyer will not be able to process the purchase.

 

There may also be tax issues to consider. GST is most likely but there may be other points that the IRD needs information on. Depending on the seller’s circumstances, there may be outstanding tax debts to settle.

 

Compliance

Any purchasers will want to know that the building they are buying is compliant with the Council and insurers.

 

This can mean current fire risk certification, being free of asbestos, there is no illegal disposal of toxic wastes, and much more.

 

To ease the sale, and to maximise the sale price, it is important to have all of this documentation readily available. Your lawyer can arrange for these to be put together in a portfolio of documents for the buyer’s lawyers to review.

How to Choose the Right Commercial Property Lawyer

When you are selecting a lawyer for commercial property in Auckland think about these issues:

• Specialisation: Commercial property is more complex than residential so look for someone with a strong background in the topic.
• Experience: Only hire lawyers who have a demonstrable successful record in dealing with property sales in Auckland.
• Reputation: It is easy to find reviews but ask for testimonials from previous clients.
• Transparency: Ask for an indication of the fees involved, not only the lawyer’s but any third-party costs too.

Next Steps

Selling commercial property is an important and generally costly activity. It needs experienced professional legal support to ensure a smooth transaction with minimal risk. Talk to a specialist Auckland lawyer for selling commercial property before you commit to any agreement with a buyer.

 

McVeagh Fleming in the heart of Auckland CBD has lawyers experienced in the local commercial property market. Click here for more information.