Make an offer to buy a business property
Understand conditional offers, lockout agreements, building survey results and raising finance for the purchase.
When you think you have found the right business premises, compare the price with other similar properties in the area. If you are satisfied that the price is fair, you can then make a conditional offer to the property agent. This means telling the property agent that you want to buy the property for a particular price, provided that certain conditions are met, such as:
- a satisfactory building survey
- being able to raise the finances to complete the purchase of the property
- planning permission for any property alterations is granted
The property agent is obliged to forward your offer to the client, the vendor. If the vendor is happy with the price you propose, the offer will be accepted. If not, you may want to negotiate further to reach a mutually agreeable figure.
Reaching an agreement to buy a property
Make sure you get a lockout agreement when your offer to purchase the property is accepted by the seller. This means that from now on, the agent will not market the property or negotiate with anyone else about selling the property. However, you should note that if another offer is received, the agent is still obliged to pass this on to their client. Your part in the agreement is to make sure that all the necessary checks are made and that you have raised the money to buy the property.
If you have applied for a mortgage, you will need to have a written offer from the lender before committing yourself to buy. See commercial mortgages and lenders.
It is advisable to seek professional expert financial advice when purchasing commercial property.