:: Property

The Process

Buying or selling a business – the general procedure is the same and depending on the type of business additional enquiries and information will be required.

A Buyer, his accountants and legal advisors will have many questions and a Seller’s solicitors will require information to enable them to prepare the contract documentation. It is therefore helpful on any sale for a Seller to have done most of the groundwork beforehand to give his advisors a complete picture.

Below is a list of the information that the Seller should make available to his advisors. It is also helpful for the Buyer to consider and ascertain the questions that they may wish to ask the Seller of the property and a business.

Title – ensure that you know where your Title Deeds are and your mortgage account number to enable the Deeds to be sent to your solicitor promptly.

If Leasehold, ensure that the rent and service charge (if any) is paid up to date and that you have receipts for the last payments.

Rights – if you have informally been granted rights over a neighbouring property with the idea that in due course these would be formalised, then instruct your solicitor to prepare the appropriate documentation to prevent any delay in completion.

Local Authority Licences – have available copies of any planning permissions that you have obtained, copies of the latest environmental health report, fire certificate and ice-cream sale licence. If you have been served with any notices then make copies available.

Inventory – prepare the inventory of every item that is included in the sale. Included in the inventory but separately listed should be those items which are subject to any HP loan, lease hire or credit agreement. Have copies of the agreements available and indicate whether or not you expect the Buyer to take over the liability under the agreement.

Justices Licences – make sure that your premises licence, performing rights licence and gaming machine licence is in order and ensure that copies are available.

Employees – provide a list of your current employees, including date of commencement of their employment, hours worked, salary, age and holiday entitlement.

Accounts – you will be expected to provide copies of the last three years profit and loss accounts, make sure that you have copies available and that last year’s accounts have been prepared by your accountants.

Tax – consider the VAT and tax implications of your sale with your accountant.

Warranty and Disclosure – you will most probably be required by your Buyer’s solicitors to warrant i.e. guarantee that your accounts and details that you have given in connection with your business are accurate and that you are not aware of anything that would affect those accounts or your business. If you do make a warranty which is later found to be incorrect the Buyer may have a claim against you for damages.

Stock – have an estimate of stock available and advise your solicitor how you wish the stock to be dealt with i.e. the stock-take done by a specific firm or is it to be done by yourself with the concurrence of the Buyer. If it is to be done by a specific firm of stock-takers, who is to pay the costs of this? In normal circumstances one should bear in mind that the greater the stock (for example retail shops) it is usual to use stock-takers for this but for example for the sale of a smallish hotel, say twenty bedrooms, then it is normal for the owner and the Buyer to do the stock-take themselves.

Restraint of Trade – it is possible that you will be asked to enter into a promise that you will not trade in competition within a certain radius (for example two miles) for a number of years. You should consider if this will conflict with any other business interest that you might have in the area and also what sort of restraint that you are prepared to agree to.

Claims – if you are aware of any claims pending against the business or you for example the unfair dismissal of an employee, County Court case or summons due, it is appropriate to give details to your solicitor before the contracts are issued.

Business Contracts – you should also let your solicitor have any details of any business contracts, advance payments, tie or solus agreements and agency agreements that affect your business. Please provide your solicitor and agent with copies of these.

Please do not hesitate to contact us for all your property transaction requirements; we will be happy to help.

Professional legal advice on all aspects of property services

OUR SERVICES

Why Austen Whetham & Guest?

Our aim is to make your property transaction as stress free as possible. We will advise you thoroughly and coherently on all aspects of the transaction, and do our utmost to help you exchange in a convenient timescale.

Choose AWG because:

We have a highly experienced team of solicitors who will carry out the conveyancing process on your behalf;
We have electronic access to the Land Registry, Local Authority Search departments and other companies so as to ensure that your transaction can proceed at the pace you want;

All the important work in your case will be carried out by qualified and experienced solicitors, with whom you will have telephone and personal contact throughout the transaction;
We can tailor our service to meet your individual needs.

ELIZABETH WEST

Email: elizabeth.west@awg-law.co.uk

Direct Dial: 01308 426831