Commercial property searches are important when acquiring commercial premises, whether you are taking on a commercial lease, purchasing a commercial property or obtaining a property with commercial finance.
It is important to carry out full due diligence when acquiring commercial property, whether as a purchaser or a commercial tenant. Searches can reveal potential risks associated with a property before the transaction completes. This allows you to make an informed decision about whether you wish to proceed with acquiring the property.
Below is an overview of some common searches that may be carried out when acquiring commercial property.
Water and drainage search
A water and drainage search reveals whether a property benefits from mains water and foul and surface water drainage. It also shows the proximity of the property to public sewers and pipes within the property boundaries.
If you are considering developing a commercial property in the future it is important to establish the location of sewers, mains and pipes within the boundaries of the property to establish if a ‘build over’ agreement is required or for instance when any part of the premises already built required a ‘build over’ agreement.
The search will also reveal whether the sewers, drains and pipes serving the property are privately owned or publicly adopted by the local authority which helps identify who is responsible for maintenance, repairs and any associated costs.
Local search
A local search provides detailed information about the property and the surrounding area. This can include whether the road is adopted by the local authority, proposed road schemes, planning permissions relating to the property, building regulation approvals and completion certificates.
It can also reveal whether the property is listed or located within a conservation area.
Environmental search
An environmental search identifies whether the property may be affected by environmental issues such as flooding, subsidence, contamination or whether the property is located within a radon affected area.
The search also provides information about the previous use of the land, which may reveal whether historic activities could present an environmental risk.
Chancel repair search
A chancel repair search identifies whether the property may be subject to a historic liability regarding chancel repair liability requiring the property owner to contribute towards the cost of repairing the chancel of a local parish church.
If a potential risk is identified, a chancel repair indemnity policy can usually be obtained to protect the property owner against the risk of any potential for such liability.
Why searches are important
These standard searches help identify potential risks and allow anyone acquiring a commercial property to make informed decisions before proceeding with the transaction.
Depending on the location of the property and the intended business use, additional searches may also be recommended.
Although searches are not compulsory when acquiring commercial property without a lender, they remain an important part of the due diligence process. Proceeding without searches may expose a buyer or tenant to unforeseen legal, environmental or financial risks.
Why choose Lewis Denley Solicitors
Understanding the legal process when acquiring commercial premises is essential to making informed decisions and protecting your business interests.
At Lewis Denley Solicitors, our Commercial Property team combines expert legal knowledge with a practical and forward thinking approach.
Our Real Estate team includes Louise Hollow, a Commercial Property Solicitor, who advises businesses and individuals on all aspects of commercial property transactions. Louise works closely with clients to ensure they are supported throughout every stage of the transaction.
We provide guidance across Horsham and Sussex, helping businesses and individuals make informed decisions when acquiring commercial premises.
If you are considering taking on a commercial lease, purchasing a commercial property or obtaining commercial premises with finance, contact our team today on 01403 456430 to speak with Louise Hollow or a member of our Real Estate team.