- Review the contract
Commercial property sale: Commercial contracts are usually drafted using the standard Real Estate Institute of Queensland (REIQ) commercial land and buildings contract, but either party can choose to include special conditions within the contract that may alter or replace the standard conditions. It’s important that the contract conditions listed reflect your requirements exactly as you want them, as disputes often arise over contractual terms during the process of selling a commercial property.
- Meet your obligations
During the process of a commercial property sale, several steps need to be carried out to ensure you meet your obligations as a seller. Along with organising transfer documentation for your sale, a lawyer can assist in negotiating and confirming reasonable extensions of time requested by the buyers, and let you know when each condition becomes satisfied.
If there is currently a mortgage over your property, the release of the mortgage will need to be arranged with the financial institution. Your lawyer can liaise with your bank to ensure that the required steps are taken to ensure the release of the mortgage is ready for settlement.
- Know the adjustable items on your settlement statement
In drafting of the settlement statement, adjustable items such as outgoings and rent will need to be considered as they have an impact on the purchase price. A commercial property may already have a tenant, so your lawyer can help by doing rental adjustments. Occasionally land tax will also be a consideration, and specific calculations for land tax can depend on clauses in the contract.
- Be GST prepared: issuing tax invoices
As a seller of a commercial property, if you are registered for GST you will need to provide the buyer with a GST tax invoice to enable them to claim a credit for GST in the purchase price. Your lawyer can assist with identifying what needs to be listed on the invoice, and provide samples of an appropriate invoice.
- Confirm you are ready to settle
Settlement of a commercial property sale can be a stressful time without the support of a lawyer. On the day of settlement, your lawyer will usually obtain the final payout figure on your mortgage from your financial institution and submit final cheque details to the buyer’s solicitor.
How we can help
Our expert lawyers can support you at every step of your commercial property sale. For more information on how we can help you, and for a quote, contact Cornerstone Law Offices on:
Phone: 1300 267 637