Legal due diligence in Scottish commercial property acquisitions
Produced in partnership with Rachel Oliphant of Pinsent Masons LLP
Legal due diligence in Scottish commercial property acquisitions

The following Property guidance note Produced in partnership with Rachel Oliphant of Pinsent Masons LLP provides comprehensive and up to date legal information covering:

  • Legal due diligence in Scottish commercial property acquisitions
  • The purpose of due diligence
  • Scope of due diligence
  • Carrying out the due diligence
  • Community right to buy
  • Title investigation
  • Occupational leases
  • Site visit
  • Energy performance
  • Tax
  • more

The purpose of due diligence

Due diligence (the process by which information about the proposed purchase is collated and assessed by the buyer's advisers) enables the buyer to make informed decisions about the property that it is proposing to buy. The due diligence will reveal if there are any potential risks which the buyer will be exposed to and the buyer can then decide how to minimise these risks. This may be by:

  1. an adjustment to the price

  2. warranties from the seller in the missives

  3. title indemnity insurance to cover the risk

  4. corrective conveyancing or an application to the Lands Tribunal to vary or remove title conditions, or

  5. not proceeding with the purchase

Scope of due diligence

The buyer's solicitor's first step is to find out as much as possible about the proposed transaction by reviewing the heads of terms, speaking to their client to find out what the client's plans are for the property (what they want to use it for) and if they have any particular concerns about the property.

Check:

  1. where the property is located and if it is in an urban or rural location (this affects the issues arising and mapping requirements)

  2. if there are any tenants in occupation

  3. what type of property it is (office/retail/industrial/residential etc)

  4. what the current use of the property is