The Investment Property Forum has published a second edition of “Readiness for Sale” – A Guide for Streamlining Commercial Property Transactions.
The first edition of the guide was published in 1996. The intention of the guide is to highlight factors which tend to delay property transactions and suggest ways in which procedures can be improved to minimise delays. Its principal message is that preparation is key and that if a property is kept ready for sale, the actual transaction time will be reduced.
Although the guide advocates keeping all properties ready for sale, it recognises that the management time and costs to do so might make it unrealistic in all cases. However, the guide does suggest that it might be prudent to keep a property ready for sale where:
It has been newly developed (presumably on the basis that the client and its professional team should be up-to-speed with matters and there should not be much more additional work to make the property ready for sale).
It has been recently acquired (similarly, the due diligence work carried out on the acquisition should mean that most of the preparatory work for a sale has been done already).
The seller indicates that it is contemplating a sale even though the exact timescale for the disposal is uncertain.
Although experienced property lawyers and other advisors will be familiar with many of the best practice suggestions contained in the guide, it is a very useful reminder of the ways in which the seller and its advisers can prepare a property for sale to avoid unnecessary delays.
The guide also contains a key steps flowchart for both an asset and a corporate acquisition, and a checklist.