Acquisition of a commercial property portfolio (buyer)—preliminary matters
Acquisition of a commercial property portfolio (buyer)—preliminary matters

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Acquisition of a commercial property portfolio (buyer)—preliminary matters
  • Who is the buyer?
  • Who is the seller’s solicitor?
  • Taking instructions and reviewing the heads of terms
  • Preliminary advice—valuation and survey
  • Team briefing

This Practice Note is for use on the acquisition of a commercial property portfolio. It is not exhaustive and you must always consider whether there are any other issues that need to be addressed. It is assumed that:

  1. the portfolio is being acquired for investment purposes only

  2. the seller of each property within the portfolio is solvent

  3. the portfolio properties are not subject to any residential tenancies, and

  4. if the buyer is acquiring the portfolio with finance, the lender is separately represented

Warning: If a portfolio property is being sold subject to two or more residential tenancies, check if the Landlord and Tenant Act 1987 (LTA 1987) confers on the tenants a statutory right of first refusal. If so, the buyer must ensure that the correct statutory procedures are followed. See Practice Notes: Landlord and Tenant Act 1987—tenants' right of first refusal, Landlord and Tenant Act 1987—what are premises, what is a flat and who is a qualifying tenant? and LTA 1987—pitfalls and practical tips.

Who is the buyer?

Verify the buyer’s identity as soon as possible:

  1. as required by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—for more information see: Law Society – anti-money laundering guidance (September 2017)

  2. to ensure that neither you nor your firm has any conflict of interest which