Purchasing commercial property in the UK is a major financial and strategic decision. From retail units to office blocks, each acquisition involves a complex legal process designed to uncover risks and protect your investment. This guide sets out the stages in detail.

The buyer and seller agree provisional terms, including price, deposit, timescales, and any conditions. Although not legally binding, they set the framework for the contract.

The buyer’s solicitor investigates the property to ensure there are no hidden problems. This includes:

• Title Review: Confirming the seller owns the property and identifying restrictions, easements, or mortgages.

• Searches: Local authority, environmental, water and drainage, highways, and Land Registry.

• Planning and Building Regulations: Ensuring lawful use.

• Survey: Independent structural inspection.

• Tenancy Review: If buying a let property, checking existing leases.

The buyer’s solicitor amends the draft sale contract to reflect agreed terms and protect the buyer’s position. Key points include:

• Deposit arrangements (usually 10%).

• Warranties and indemnities.

• Completion date.

At this point, the agreement becomes legally binding. The buyer pays the deposit and sets the transaction on course for completion.

On the agreed date, the balance of the purchase price is transferred, and ownership passes to the buyer. Keys are handed over and the buyer takes possession.

• Stamp Duty Land Tax (SDLT): Payable within 14 days of completion if the price exceeds £250,000.

• Registration: Ownership must be registered with HM Land Registry.

• VAT: Some commercial sales are subject to VAT, depending on the property status.

• Restrictive covenants limiting property use.

• Environmental liabilities (e.g., contamination).

• Overage agreements (extra payments due to seller if property gains planning permission later).

A successful commercial property purchase requires thorough due diligence, robust negotiation, and expert legal guidance. By following the process step by step, risks can be minimised, and opportunities maximised.