Buying a commercial property

Buying a commercial or industrial property involves a significant capital outlay and should not be entered into lightly or without independent advice.

Once a sale has gone unconditional, you will be required to pay a non-refundable deposit with the balance of the purchase price to be paid on the agreed settlement date. If you do not settle then your deposit will generally be lost and the vendor may take legal action to enforce settlement or put the property up for sale again.

Bayleys prepares comprehensive Information Memorandums on most properties it markets in conjunction with vendors. Their purpose is to provide prospective purchasers with as much relevant information as possible to assist them in their decision-making process.

The Information Memorandum is likely to include the following:

• Description of the property and any buildings, including the seismic rating of buildings where available (most potential purchasers will ask for this)
• Location and its attributes
• Tenant details, history and descriptions
• Zoning and add value and development opportunities the property may provide
• Appendices including certificates of titles, leases and other relevant legal documentation

Vendors must also warrant that all required resource and code of compliance consents have been obtained for the property. If not you must disclose this and any other information that could adversely affect a purchaser eg, structural defects, land contamination, rental arrears etc. Failure to do so may expose you to future legal action from a disgruntled purchaser.