Is your property ready for sale?
19th June, 2012
A second edition of “Readiness for Sale” – A Guide for Streamlining Commercial Property Transactions (the “guide”) has been published The Investment Property Forum (“IBF”).
In 1995, the IBF set up a working party to consider ways to streamline commercial property transactions. This led to the first edition of the guide in 1996.
As the IBF website points out, property in the UK continues to represent approximately 7%-8% of the total investment market (by value).
Liquidity remains an issue for property as an asset class. Keeping a property ‘ready for sale’ will help to reduce the cost and time involved in any transaction. In the current tough market, delays could lead to the prices being chipped, deals falling through or funding being withdrawn.
The guide recommends that sellers and their advisors should familiarise themselves with the property and its title before it goes on the market.
Examples of issues to consider include:-
- Gathering the necessary management information including obtaining an EPC if necessary
- Title defects or adverse rights
- Physical defects in the property
- Missing title deeds
- The effect of any financing arrangements on a sale
- Getting together replies to CPSE enquiries and supporting document
- Reviewing surveys / reports to be disclosed to the buyer
- Warranties etc for recently constructed properties
- Planning history
- Tax including VAT, capital allowances, SDLT and CGT
- What needs to be addressed in the heads of terms.
The appendices to the guide contain a flowchart for both an asset and a corporate acquisition, and a checklist.
If this article has raised any queries, please feel free to contact Emma McGlinchey, Partner on 01244 405567 or at [email protected]
You might also be interested in...
3rd July, 2020
Brief Background Mr & Mrs Villier married in 1995, and lived in Scotland together until separation in 2012. Once separated, the wife moved to England, but the husband remained living in Scotland. In July 2013 the wife issued a divorce petition in England, but in October 2014 the husband lodged a writ for divorce in Scotland. As the... Read More »
1st July, 2020
Agricultural property relief from Inheritance Tax has long been a valuable relief for estates, which when available can... Read More »
29th June, 2020
In May 2020 the UK Government released additional guidance in connection with the Covid-19 pandemic, this time in... Read More »