Commercial Property Sales Solicitors

Navigating commercial property sales is complex and requires expert legal guidance. Sherwin O’Riordan Solicitors offer comprehensive legal services for smooth transactions, whether you’re buying or selling. Our team is dedicated to protecting your interests and providing clear, practical advice throughout the process.

The Commercial Property Sales Process

The commercial property sales process in Ireland involves several key stages, from initial negotiations to the final transfer of ownership. Understanding these stages is crucial for both buyers and sellers.

Why You Need a Solicitor

Engaging a solicitor for a commercial property sale is essential to safeguard your legal and financial interests. Commercial property transactions inherently involve more complexity than residential ones, including intricate lease agreements, planning permissions, environmental considerations, and tax implications. A solicitor conducts thorough due diligence, drafts and reviews contracts, advises on potential risks, and ensures compliance with all relevant laws and regulations. Without proper legal representation, you risk facing significant financial losses or legal disputes down the line.

What Steps Are Involved?

The commercial property sales process breaks down into several distinct steps:

• Pre-Contract Stage:
  • Heads of Terms/Letter of Intent: This initial document outlines the key commercial terms of the agreement between the buyer and seller, such as the purchase price, property description, and proposed closing date. While generally not legally binding, it sets the framework for the formal contract.
  • Due Diligence: The buyer’s solicitor conducts extensive investigations into the property, reviewing title deeds, planning permissions, environmental reports, structural surveys, and existing leases. This step is critical to identify any potential issues or liabilities associated with the property.
• Drafting and Negotiation of Contracts:
  The seller’s solicitor prepares the draft contract for sale, which the buyer’s solicitor reviews and negotiates. This contract details all legal terms and conditions of the sale.
• Contract Stage:
  • Signing of Contracts: Once both parties are satisfied with the terms, they sign and exchange the contracts. At this point, the buyer typically pays a deposit (usually 10% of the purchase price), making the agreement legally binding.
• Post-Contract/Pre-Completion Stage:
  • Requisitions on Title: The buyer’s solicitor raises specific questions (requisitions) with the seller’s solicitor regarding the property’s title to ensure it is clear and marketable.
  • Preparation of Closing Documents: Both solicitors prepare all necessary documents for completion, including the Deed of Transfer, which legally transfers ownership of the property.
• Completion Stage:
  • Closing: On the agreed closing date, the buyer pays the remaining balance of the purchase price, and the seller hands over the keys and all relevant property documents. The Deed of Transfer is executed.
• Post-Completion Stage:
  • Stamp Duty Payment: The buyer pays stamp duty on the transaction within 30 days of the effective date of the instrument (usually the date of execution of the Deed of Transfer).
  • Registration of Title: The buyer’s solicitor registers the transfer of ownership with the Property Registration Authority (PRA) to update the legal title to the property.

Stamp Duty

Stamp duty is a tax levied by the Irish government on certain legal documents, including those related to the transfer of property. Specifically, for commercial property, the current rate of stamp duty is 7.5% of the purchase price or market value, whichever is higher. Consequently, you must pay this to the Revenue Commissioners within 30 days of the effective date of the instrument. Moreover, failing to pay on time can result in penalties and interest.

For expert legal advice on your commercial property  contact Sherwin O’Riordan Solicitors today.

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