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Commercial Property Purchase Agreement for the United Kingdom

Commercial Property Purchase Agreement Template for England and Wales

A legally binding agreement governed by the laws of England and Wales that sets out the terms and conditions for the purchase of commercial property. The agreement covers crucial aspects including property description, purchase price, completion mechanics, title warranties, property condition, and various commercial terms. It incorporates relevant legislative requirements under English law and provides a framework for the transfer of commercial property ownership.

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What is a Commercial Property Purchase Agreement?

The Commercial Property Purchase Agreement is a fundamental document used in real estate transactions in England and Wales. It is essential when acquiring commercial real estate, whether for investment, business operations, or development purposes. The agreement comprehensively details the property being purchased, purchase price, completion requirements, warranties, and various commercial terms. It ensures compliance with English property law requirements and provides certainty for both parties in the transaction. This agreement is particularly important as it forms the basis of the property transfer and sets out the rights and obligations of both parties.

What sections should be included in a Commercial Property Purchase Agreement?

1. Parties: Details of buyer and seller, including registered addresses and company registration numbers

2. Background: Context of the transaction and high-level property details

3. Definitions: Key terms used throughout the agreement including Property, Completion Date, Purchase Price

4. Sale and Purchase: Core transaction terms including price, payment terms, and property description

5. Title: Warranties regarding ownership, title quality, and encumbrances

6. Completion: Completion date, completion requirements, and mechanics of completion

7. Property Condition: State and condition warranties, physical condition acknowledgments

8. Insurance: Insurance obligations until completion

9. Default: Consequences of default by either party

10. Notices: Process for serving notices under the agreement

What sections are optional to include in a Commercial Property Purchase Agreement?

1. VAT Elections: Required if property is VAT-elected or if seller needs to make VAT election

2. Existing Tenancies: Details of ongoing leases and treatment of rental deposits

3. Environmental Provisions: Environmental warranties, indemnities, and specific provisions for contaminated land

4. Planning: Specific planning warranties and conditions if planning permission is required

5. Service Contracts: Treatment of existing service contracts and maintenance agreements

What schedules should be included in a Commercial Property Purchase Agreement?

1. Property Description: Detailed property description, plans, and site boundaries

2. Title Documents: List of title documents and certified copies to be delivered on completion

3. Existing Leases: Details of current tenancies including lease terms and rental payments

4. Property Searches: Results of local authority, environmental, and other relevant searches

5. Environmental Reports: Environmental survey results, reports, and declarations

6. Service Contracts: List of transferring service contracts and maintenance agreements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions









































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Industries

Law of Property Act 1925: Fundamental legislation governing land law principles, requirements for legal transfers, and legal estates in land in England and Wales

Land Registration Act 2002: Legislation covering requirements for property registration, priority of interests, and electronic conveyancing provisions

Law of Property (Miscellaneous Provisions) Act 1989: Key legislation requiring contracts to be in writing and setting out formal execution requirements for property transactions

Land Registration Rules 2003: Detailed procedural requirements for registration including necessary forms and documentation

Value Added Tax Act 1994: Legislation governing VAT implications and requirements for commercial property transactions

Environment Protection Act 1990: Environmental legislation addressing liability considerations and environmental protection in property transactions

Planning and Compulsory Purchase Act 2004: Legislation covering planning permission requirements and development restrictions for properties

Energy Performance of Buildings Regulations 2012: Regulations requiring Energy Performance Certificates (EPCs) for commercial properties

Landlord and Tenant Act 1954: Legislation governing rights and obligations where property is subject to existing tenancies

Money Laundering Regulations 2017: Regulations setting out due diligence requirements for property transactions to prevent money laundering

Town and Country Planning Act 1990: Legislation governing use classes, planning restrictions, and development control

Building Regulations 2010: Regulations ensuring compliance with building standards and safety requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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