Strategy with the Sales Process
Those in the business of selling commercial property can achieve the best price within a short period of time through a staged approach to technical due diligence.
The old adage of ‘buyer beware’ typically means that purchasers conduct their own technical due diligence which can uncover late in the day surprises relating to condition, deferred maintenance, non compliances with statutory obligations or capital expenditure needs. These may include deal breakers or points of negotiation on price and contractual conditions.
These late in the day uncertainties can be mitigated by vendors who take a staged approach to technical due diligence and where the end result, the technical due diligence report, can be assigned to the purchaser. Continue reading
Protecting Your Assets by Making Good
Under typical lease arrangements the tenant is responsible for repairs and maintenance to a specified condition during the lease term and for returning the property to a defined condition at expiry.
This should not be underestimated. In terms of commercial office property, lease end Make Good can equate to 75 to 120% of the rent per square metre and more under certain circumstances.
If left to the uninitiated a lack of repairs and maintenance will lead to reduced life expectancies of the building’s elements, plant and equipment – and in turn, premature capital expenditure for the replacement of such items.
This often leads to conflict and disputes which can complicate the tenant’s relocation or the landlord’s re-letting of the premises. In some instances this can also legitimately allow the landlord to claim loss of rent, rates and other associated losses which can be significant. Continue reading
