A commercial settlement, otherwise referred to as commercial conveyancing, refers to the process in which the title to a commercial property is transferred from a seller to a buyer. Within this process, the ‘conveyancing’ aspect refers to the branch of law involving the preparation of documents in use when transferring said property.
There are a number of steps within the standard commercial settlement process. Read below for more information about what each of these steps entail.
The Sales Contract
In the first step of the process, the real estate agent or solicitor of the seller will usually prepare the property’s contract of sale. Once the buyer’s team has reviewed the contract and negotiated any desired changes, a cooling-off period may begin – wherein the buyer may elect to withdraw from the contract without a legal penalty.
Within the pre-settlement stage, the purchaser of the property is entitled to an inspection, or if the property is sold with vacant possession, the seller must ensure the premises is empty and clean by the time of settlement. The contract can be terminated immediately if the purchaser is not satisfied with the condition of the property.
Final settlement figures are usually available on or just before the day of settlement. Prior to settlement, the purchaser(s) will prepare and finalise the figures and cheque details prior to arranging a time and location to meet and perform the transaction.
At settlement, the agents of the buyer and seller will meet to hand over both a mortgage document and a bank cheque in favour of the mortgage’s release. The buyer’s bank will be responsible for receiving the transfer documents, releasing the mortgage from the seller’s bank and processing other cheques for outstanding fees, legal costs or utility charges.
Immediately following a property’s settlement, keys and other access devices are delivered to the property purchaser. Afterwards, the relevant authorities must be made aware of this change in ownership and transfer documents are to be lodged with the appropriate office. This step is generally performed by the buyer’s lending institution.
Why Utilise A Solicitor in Your Commercial Settlement?
With the help of an experienced solicitor, the commercial settlement process can be performed smoothly and with accurate efficiency. The agent can offer relevant legal advice and will carry indemnity insurance – which renders the client unprecedented financial security and leaves them with a safety net should anything go wrong.
If you’re seeking legal advice on a commercial settlement in Western Australia, look no further than C&R Law. With over 80 years of combined experience, C&R are a team of passionate and dedicated Perth lawyers, settlement agents and conveyancers – and are sure to assist your journey from contract to settlement. Call us today on (08) 6160 6470 to enquire.
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