In recent years more and more people are opting to commission their own due diligence reports before transactions begin. Sutton & Co. assist property owners in order to ensure that your transaction goes through smoothly. We assist residential and commercial property owners to commission searches and surveys before their properties are placed on the market and the benefits are clear.
Fail to prepare, prepare to fail
The due diligence process is incredibly important in any property transaction as it ensures that any issues with the property are unearthed. A competent purchaser’s team of solicitors, accountants and surveyors will inevitably unearth any issues with the property which in turn delays transactions, threatening the sale price and resulting in many transactions falling through.
Once an offer has been accepted, any leverage on the purchase price as a result of works that need to be done to the property will be in the buyer’s hands.
Any issues that are unearthed can also make it difficult to re-market the property to individuals who were previously interested.
The due diligence process is most successful when the surveys and searches align with the property in question. Any planning permissions that need to be obtained, any structural issues and any environmental issues need to be dealt with prior to the transaction to ensure that the property in question is fit for purpose. As a rule of thumb, you should place yourself in the purchaser’s position and consider what you would expect to see as a prospective buyer.
As the seller of a property, you will have access to a variety of documents which surveyors will find useful for example, asbestos, concrete, drainage and fire reports. When these are provided to a surveyor by the seller the scope of the survey will drastically change. The surveyor’s time will be saved and perspective can be given.
Choose who you work with
Another benefit of the report is that you can select your due diligence providers. If you have a particularly trusted surveyor then you can use these, and if any issues do arise, you will be confident that you can trust the surveyor. You can also take advantage of your solicitor’s expertise who can discuss enquiries with you directly rather than fielding enquiries received from a buyer’s solicitor.
It is always important to be aware of the potential pitfalls of a transaction before you begin. Your solicitor and surveyor will be able to work together to review whether any additional permissions or works need to be done to the property prior to listing. Additionally, you will be in a position to work with your solicitor to go through any Land Registry issues and legal matters that need to be addressed such as applying for Probate or merging your Leasehold.
While you are searching for a buyer you can save important time by commissioning due diligence reports. This allows you to cut out delays to the transaction and move at your own pace. This takes a large amount of the stress out of a transaction and shows prospective buyers that you are a serious seller.
When we order searches in anticipation of a sale we can help you to shave weeks off the conveyancing progress. On average, searches take 4 weeks to arrive and are ordered by a buyer’s solicitor after they have received their contract pack and mortgage offer. By ordering searches yourself, you can ensure that any delays are managed effectively and should the transaction fall through you will be able to re-use your search results.
How we can help
At Sutton & Co. we are happy to assist prospective sellers with preparing their property for the market. We can assist both Commercial and Residential Property owners. If you are planning on placing your property on the market or would like us to review your property before you decide please feel free to get in touch with a member of the team on 0121 448 3107.