What Should I Disclose When Selling A Commercial Property?

Our commercial property solicitors in Peterborough help a lot of businesses sell their commercial property. However, it is important that there are a lot of things to remember, to protect you and the property when selling a commercial property. In which blog post our commercial property law experts look at what you should disclose when selling a commercial property.

A seller may assume the principle of ‘caveat emptor’ more commonly known as ‘let the buyer be aware’. This means that the seller feel that have no obligation to disclose any issues within the property. However, this is not the case. Failing to disclose essential or key information when selling a commercial property could lead to misrepresentation claims. It could also lead to contract disputes and serious financial consequences.

If you are looking to sell your commercial property, speak to our commercial property lawyers. We will help to ensure that the terms are clear and actual representation of the commercial property. This is essential to avoid potential legal challenges during the sale of the commercial property or in the future.

So, what must sellers disclose when selling their commercial property?

A seller must complete a standard Property Information Form, also known as a TA6. The process of a commercial property sale will include more extensive disclosures too. This will often be through Commercial Property Standard Enquiries, also known as CPSEs. Additional bespoke enquires may also be required. This will be part of the buyer’s due diligence.

It is essential that sellers do not misrepresent the property in a way that could mislead the buyer. By misrepresentation, we mean if a seller was to provide false or misleading statements about the property. This would lead to the buyer having grounds to sue.

General defects are often seen as the responsibility of the buyer to uncover through due diligence. However, hidden structural issues could create a liability of there are not disclosed. Any ongoing disputes or legal issues should be disclosed by the seller too. The same goes for potential environmental risks. If these matters are not disclosed it could lead to a liability case.

Need help disclosing all the right things when selling your commercial property? Contact our commercial property lawyers in Peterborough now. We have the skills and experience you need to protect yourself, your business and your commercial property.