This is an extract of our Acquisition And Development Of A Commercial Site document, which we sell as part of our Commercial Property Notes collection written by the top tier of Cambridge And Oxilp And College Of Law students.
The following is a more accessble plain text extract of the PDF sample above, taken from our Commercial Property Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Elective: Commercial Property
Commercial Property Acquisition and development of a commercial site
1. Proceeding to completion of the acquisition: Under a CONDITIONAL Contract o The condition = "Acceptable planning permission" [in contract]. Notify the seller. o Developer has to complete within a certain amount of days / weeks [in contract]
o Payment [purchase price] is likely to be a fixed sum - because usually the Conditional Contract does not span over a long time [so market is unlikely to have changed]. Deposit usually already paid when contract was entered into. Under a OPTION Agreement o Developer to serve notice - exercise the option [check the TIME frame- can option still be exercised?]
o Pay Deposit of purchase price [this is in addition to the option fee already paid - non-refundable]
o Price will need to be determined [because market could have changed]
o Completion date may be linked to when the price is agreed and Option notice is served. o Insurance issues - under the option agreement WHO is to insure the property?
Proceeding to completion I. Option agreement / conditional contract exercised II. Physical inspection - has anything changed?
III. Title Investigation [is an update needed]
IV. Priority search [OS1/ K15]
V. Local Search [LLCI / CON29O/ Con29R VI. Draft transfer Deed - sign by both parties VII. Mortgage Deed VIII. Standard Requisitions on title - send to seller Post Completion I. Send TR1 to Land Registry II. Pay SDLT III. Register any mortgage at companies house
2. TAX implications: VAT
1 Seller may have to pay VAT [payable on the construction services for commercial development and Professional fees - INPUT tax]
Seller must account to HMRC if he charges VAT (OUTPUT tax) [seller must be
Buy the full version of these notes or essay plans and more in our Commercial Property Notes.