Why engage Sheehan & Co to act on your behalf in the purchase or sale of commercial land and buildings?
Paul Sheehan and his team have broad experience in acting for commercial clients throughout Queensland (but particularly within the Surat Basin) since 1987 in the purchase or sale of commercial land and buildings. Paul understands the issues that need to be clearly addressed in commercial contracts. Some of these issues include:
Have you obtained advice from your accountant as to the appropriate vehicle to hold the title to the commercial property from both a taxation and risk management viewpoint? Are you aware of what options are available?
The treatment of GST - is the Seller registered for GST purposes? If so, is GST payable on the supply of the property under the Contract? Is the supply of the commercial property a supply of a going concern for GST purposes thereby making the transaction GST-free? Are any items of plant, machinery and equipment included in the sale? If the sale is not a supply of a going concern according to your accountant, care will need to be taken as to what value is put on the relevant plant, machinery and equipment included in the sale as GST may be payable on the supply of these items under the Contract.
Have you conducted any pre-Contract due diligence searches and enquiries in relation to the property? Do you wish to make the Contract conditional upon you obtaining satisfactory results in relation to your due diligence searches and enquiries? For example, you may wish to conduct various searches of governmental and local authority records to ascertain whether there are any proposed plans which may detrimentally affect the property or your intended use of the property in the future (for example, resumption of land by the Department of Transport and Main Roads; the construction of a new railway line route by Queensland Rail; the construction of a new electricity transmission line by Powerlink...)
What is the material use of the property according to Council's town plan? Is the present use of the property lawful? Do you require the Contract to be made conditional upon a Development Application being lodged with Council seeking a material change of use of the property so that you can lawfully use the property as you intend under the new use?
Is the Seller leasing the commercial property to a current tenant? If so, is there a written lease and have you been provided with a copy of same? Do you require a summary of the main provisions of the lease to be prepared for your consideration?
The Contract can be made conditional upon you being satisfied with respect to the terms of the lease within a certain period of time from the date of the Contract. It may transpire that you are not satisfied with the rent review mechanisms contained in the lease and how they operate. Does the rent payable under the lease reflect current market rate? Is the tenant financially sound and responsible and the Seller taken some form of security (for example, director's personal guarantee, bank guarantee, cash bond...) from the tenant for the performance of the tenant's obligations under the lease? There are numerous issues that need to be addressed - please be aware that once the lease is assigned to you, you will be the new landlord and be bound by the terms of the lease during the balance term of the lease and any option periods granted under the lease.
Is the proposed purchase conditional upon the satisfaction of any Special Conditions which were agreed upon during negotiations? If so, what are the Special Conditions?
Has a Certification of Classification been issued by Council in relation to the building?
If the building was constructed after the commencement of the Building Code (Qld) in 1980, do you require the Contract to be conditional upon you obtaining a satisfactory Building Compliance Report from Council to satisfy yourself that all final certificates of inspection have been issued at the end of each stage of the construction of the building?
Do you require the Contract to be made conditional upon you obtaining satisfactory building/pest/electrical/plumbing/asbestos reports in relation to the building?
If you are relying on bank finance to fund the purchase, the Contract must be made conditional upon you obtaining finance approval on conditions wholly satisfactory to you in an amount sufficient to fund the transaction from your nominated financier.
The above is not intended to be an exhaustive list as the issues which will be relevant in relation to each transaction may vary.
Our services in this area are tailored to achieve better outcomes for you by:
- Taking full and detailed initial instructions from you to ensure that the proposed Contract addresses all relevant issues;
- Preferably, we draw the Contract document so that we can have control over the quality of the document and the timeliness in expediting negotiations in relation to the terms of the Contract;
- We are experienced in drawing tailor made Special Conditions to suit the specific terms of agreement - these provisions are drawn by solicitors (not paralegals);
- Paul Sheehan and his team of solicitors personally address any issues arising during the course of the transaction (the paralegal staff do not address these issues). We see this feature as being a point of difference from the "cut cost" conveyancers who are only interested in getting to point A to point B with minimal communication with their clients and often have little experience in dealing with commercial transactions.
Make an appointment
Our office is centrally located within the Surat Basin and we are pleased to meet with clients in person, via telephone or home visit to discuss your legal needs in this area.
Remember - it pays to get the right advice!
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