Selling a commercial property can be a complex process, with multiple legal and practical steps. The key to a smooth transaction is preparation. At AFG LAW, our commercial property solicitors will guide you through every stage of the sales process, from gathering the right documentation to drafting the sale contract, negotiating with the buyer’s solicitor, and working towards an agreed completion date.

With costs starting from £795 plus VAT, you can be confident that we will deliver clear advice and proactive support at a transparent cost. If you would like to discuss selling a commercial property, please call us on 01615152577or email commercialpropertyenquiries@afglaw.co.uk.

Understanding the commercial property sales process

The sales process for commercial real estate usually begins with marketing the property and identifying prospective buyers. Once a buyer is found, the parties typically agree to heads of terms which set out the key commercial points, such as the proposed sale price, timescale, and any conditions of the sale.

Although not legally binding, heads of terms provide a roadmap for the transaction. The next stages involve due diligence, drafting the sale contract, exchanging contracts, and completing the deal on the agreed date.

Throughout this process, having an experienced commercial property solicitor on your side helps avoid unnecessary delays and ensures all relevant information is properly disclosed.

What to consider when selling commercial property

1. Do you have all the documentation you need?

One of the most common causes of delay in commercial property transactions is missing paperwork. Do you know where your title deeds are? If the property is registered at the Land Registry, your solicitor can usually obtain electronic copies. However, other documents are also important, including:

• Existing leases (if the property is occupied).
• Planning permissions.
• Building regulations consent.
• Asbestos reports.
• Fire risk assessments.
• EPCs (Energy Performance Certificates).
• Health and safety files.
• Electrical and gas safety certificates.

Gathering these documents early ensures your solicitor can provide all relevant information to the buyer’s solicitor without delay.

2. Do you need consent for the sale?

If your property is leasehold, your lease may contain restrictions preventing you from selling without the landlord’s consent. If landlord’s consent is required, it is vital to apply as soon as possible, as delays here could hold up the entire sales process.

3. Is there a mortgage on the property?

You will need to provide details of any mortgage secured against the property. The sale price should be sufficient to repay the outstanding loan, and your solicitor will liaise with your lender to ensure the mortgage is redeemed on completion. Having your mortgage account details or your bank’s relationship manager contact ready will speed this up.

4. Is the property VAT elected?

Some commercial properties are “VAT elected,” which means VAT must be charged on the sale price. This can impact the attractiveness of the property for potential buyers and may complicate funding arrangements. It is important to clarify this before placing the property for sale so it can be communicated to prospective buyers from the outset. If the property is VAT elected, it is important to have evidence of this.

5. Are there any occupiers in the property?

Is the property being sold vacant or with tenants in place? If it is currently let, you will need to provide a copy of the lease to the buyer’s solicitor. If you intend to terminate the lease before sale, it is essential to check the notice provisions carefully. Our solicitors can advise you on the best approach to ensure compliance and avoid disputes.

6. Do you have a valid EPC?

Every commercial property must have a valid Energy Performance Certificate before being put on the market. EPCs last for 10 years, unless major works have been carried out since the certificate was issued.

If your property does not meet the minimum required standard (E rating), this can affect both prospective buyers and lenders. In such cases, you may need to carry out works to improve the energy rating before the sale.

7. Do you have a timescale to work to?

If you need the transaction completed by a specific date, be open and honest with your solicitor and the buyer. Setting expectations early helps avoid unnecessary frustration later in the process.

Working with professionals when selling commercial property

When selling commercial property, you may need support from other professionals as well as solicitors. For example, chartered surveyors can provide valuations and advise on condition, while estate agents will market the property. Be mindful of agent fees when calculating your net proceeds from the sale.

Drafting the commercial property sale contract

Once heads of terms are agreed and due diligence is underway, the next step is drafting the sale contract. This document sets out the rights and obligations of both parties and forms the basis of the sale agreement. At AFG LAW, we ensure the contract is fair, reflects your requirements, and protects your position throughout.

Exchange of contracts and completion

When both sides are satisfied with the terms and all due diligence is complete, the parties proceed to the exchange of contracts. At this stage, the agreement becomes legally binding and neither party can withdraw without significant penalties.

The completion date is then fixed, and on that day, the balance of the purchase price is paid, ownership is transferred, and the buyer takes possession. Your solicitor will handle the financial side, including redeeming any mortgage and paying off agent fees.

Why choose AFG Law when selling commercial property?

At AFG LAW, we believe preparation is the key to a smooth transaction. Our experienced commercial property solicitors provide clear, practical advice to help you anticipate issues, avoid delays, and achieve the best outcome.

Our service is transparent, approachable, and client-focused. If you are considering selling a commercial property, get in touch today.

We are here to help make your commercial property sale as straightforward and successful as possible. If you would like to discuss selling a commercial property, please call us on 01615152577or email commercialpropertyenquiries@afglaw.co.uk.