If you’re considering selling your commercial property, you must ensure you have the necessary paperwork to prove the property is compliant with UK laws before putting it on the market.
Planning ahead will make all the difference when attracting a buyer and ensuring the transaction goes smoothly.
Commercial Property Standard Enquiries (CPSEs)
CPSEs are a set of forms covering questions that potential buyers may have about your commercial property before entering a contract.
They play a critical role in streamlining the due diligence process and providing transparency to potential buyers.
They help by identifying any issues that might affect the value of use of the property, covering a broad range of topics, including:
- The title of the property
- Planning permission and building regulations compliance
- Environmental issues
- Services and utilities
- Leases and existing tenancies
There are currently seven types of CPSE forms that may apply to your property. Your solicitor can guide you on which forms you should respond to.
It should be noted that these should be answered accurately, misrepresenting the property can result in legal and financial implications.
Our team has outlined some of the key documents you may need when answering the enquiries:
Energy Performance Certificate (EPC)
An EPC outlines how energy efficient a property is through a rating of A (most efficient) to G (least efficient) based on energy consumption.
Alongside being a legal requirement for anyone buying or selling a property in the UK to obtain an EPC, having insight into the property’s energy usage can attract buyers.
A good rating indicates potential savings on operational costs, which is often a key consideration for businesses when seeking a commercial space.
Asbestos survey
If your property was built before 2000, finding out whether it has asbestos is essential.
This material, banned due to its carcinogenic nature and associated health risks, could still be lurking in buildings constructed before the ban.
Providing an asbestos report when selling your property will give buyers clarity on whether asbestos was used during construction and, if so, where.
If it was used, you must have an ongoing plan in place to manage asbestos, which should be communicated to buyers. Failure to manage asbestos correctly can lead to hefty fines or even imprisonment.
Fire Risk Assessment (FRA)
Having a comprehensive FRA shows potential buyers that the property is well-maintained and meets safety regulations, potentially reducing future legal and financial headaches.
The FRA should identify fire hazards, people at risk, and ways to mitigate these hazards, in line with fire safety regulations.
If you employ five or more employees you must keep a written record of your FRA.
We’re here to help
Addressing compliance issues head-on and ensuring your CSPEs are answered accurately can streamline your transaction, reduce the risk of delays, and even improve the outcome of your sale.
Our friendly commercial property experts can guide you through the process, ensuring you have the relevant paperwork and checks in place for a smooth sale.
Contact us today for legal advice when selling your commercial property.