Commercial Property Auctions
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Buying or selling commercial property at auction presents a unique set of challenges and opportunities, and having a seasoned commercial property solicitor by your side can make all the difference.
Our expert solicitors specialise in guiding our clients through the intricacies of auction transactions, offering invaluable support at every stage.
When buying, we conduct meticulous due diligence, ensuring you are well informed about the property's nuances, potential risks, and legal obligations.
For sellers, we streamline the auction process, addressing legal challenges and preparing comprehensive auction packs. With a focus on auction terms, conditions, and post-auction proceedings, our solicitors serve as your strategic partners, safeguarding your interests and ensuring a smooth, legally sound transaction.
The best place to start is thorough research, as the principle of 'buyer beware' places the responsibility on you to unearth all relevant information about the property. The auction pack, a compilation of legal documents, offers a wealth of insight into the property, covering crucial details such as contracts, title information, leases, and search results. Tapping into the expertise of commercial property solicitors ensures a comprehensive review of the auction pack, identifying potential issues that may impact your bid.
To gain a firsthand understanding of the property, make sure to arrange a viewing before the auction. This allows you to scrutinise the location, assess its suitability for your intended use, and unveil any undisclosed matters. During the viewing, pay attention to the surrounding environment, potential remedial work, and any hidden concerns.
Consider instructing a survey before placing your bid, as this can uncover hidden defects or issues that are not obvious when you view the property. Auctions often feature properties with complexities that may be overlooked, making a surveyor's insights invaluable in helping you decide whether the property is a right fit for you.
Selling your commercial property via auction offers the potential for a swift and efficient transaction. The auctioneer, after suggesting a likely selling price and reserve price, presents you with a contract detailing terms and conditions. Upon your agreement, a surveyor inspects the property, and your solicitor reviews the draft sales particulars. A guide price, strategically set for optimal results, is proposed for your approval.
A targeted marketing period of three to four weeks will follow, incorporating various tactics to showcase your property in the auction catalogue. To attract potential buyers, you might be asked to provide essential information such as planning permissions, energy performance certificates, business rate details, and local search reports during this period.
On auction day, once the hammer goes down, the sale process begins. Both solicitors will work together to achieve exchange and completion within an agreed timescale. The auction process offers flexibility, a defined timeline, and the potential for a favourable outcome, making it an attractive option for commercial property sales.
Considering an auction for buying or selling commercial property brings both advantages and disadvantages. On the positive side, auctions often offer a more cost-effective route for property acquisition compared to traditional methods. If time is of the essence, the auction process can prove invaluable, providing a quick and efficient means of securing a property, thanks to fixed completion dates typically set within 28 days.
However, it's essential to tread carefully with auctions. The inherent risks, especially without thorough due diligence, can lead to unforeseen complications. The key is to engage a commercial property solicitor to scrutinise the auction pack beforehand to help mitigate these risks. Some properties on auction may have defects or require extensive repairs, potentially hindering resale in the open market. Unseen issues and hidden costs may also surface, adding layers of complexity.
Once the hammer falls, the sale is binding, leaving little room for renegotiation, even if issues emerge post-auction. Balancing these factors is crucial in determining whether the auction route aligns with your specific commercial property goals.
Our seasoned commercial property solicitors conduct thorough due diligence, meticulously reviewing auction packs to find any potential risks and opportunities for you.
Whether you're a seller aiming for a seamless auction process or a buyer seeking to make informed decisions, our expertise ensures clarity in navigating contracts, obligations, and potential pitfalls.
At GloverPriest, we provide friendly and transparent legal advice. If you would like further advice on commercial auctions, please don’t hesitate to speak to one of our expert commercial property lawyers today. Complete our enquiry form.
