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How to stay compliant when adding a new property to your portfolio

When adding a new commercial property to your portfolio, maintaining compliance during the conveyancing process is absolutely vital.

This involves transferring the legal title of the property from the seller to you.

The process can be complex, but understanding the key stages will help you navigate it more smoothly.

Firstly, you’ll need to instruct a solicitor who specialises in commercial property law.

Your solicitor will carry out various searches to uncover any potential issues with the property.

These typically include:

Local authority searches to check for planning permissions, building regulations, and any local issues
Environmental searches to identify contamination risks
Water and drainage searches to ensure proper services are in place

Your solicitor will also review the draft contract provided by the seller’s solicitor, which outlines the terms of the sale, including the price and any special conditions.

Your solicitor will ensure the terms are fair and protect your interests.

Due diligence is another critical step, involving a thorough investigation of the property and its legal status.

This includes reviewing the title deeds to confirm the seller’s ownership and any restrictions on the property, checking for any outstanding mortgages or charges on the property, and ensuring compliance with commercial property regulations and obtaining necessary consents or licences.

Additionally, your solicitor will negotiate with the seller’s solicitor to address any issues found during due diligence or in the contract, which can include requesting repairs, price adjustments, or amendments to the contract terms.

Compliance and legal requirements

To ensure your purchase is legal and seamlessly integrated into your portfolio, you must comply with various legal requirements.

One of the first considerations is planning permission and building regulations.

You need to ensure the property has the necessary planning permissions and complies with building regulations.

Any alterations or intended use changes may require additional consents.

Health and safety regulations are also paramount for commercial properties, including fire safety measures, accessibility standards, and proper maintenance.

Ensuring the property meets environmental regulations is another critical area, including managing waste disposal, pollution control, and ensuring energy efficiency standards are met.

If the property is leased to tenants, it is essential to review existing lease agreements.

You should ensure they are legally compliant and favourable to your investment strategy, including checking for rent review clauses, tenant obligations, and any break clauses.

Finally, arranging appropriate insurance for the property is necessary.

This should cover buildings insurance, public liability, and any specific risks associated with the property type.

By working closely with your solicitor, you can ensure a smooth conveyancing process and successfully expand your commercial property portfolio without needing to take on many of the complicated aspects of the process yourself.

Your solicitor can help you with proper planning, compliance with legal requirements, and guide you towards resources for effective portfolio management – all of which are key to maximising your investment returns.

To speak to a qualified and experienced commercial property solicitor, get in touch with our team.

Carl Jones

Managing Director

I qualified as a Solicitor having completed my training with Mander Hadley in 1992 and am a member of the Law Society Property Section and The Warwickshire Law Society.