Question 1

What are the key steps in a commercial property acquisition?

Accepted Answer

A commercial property acquisition typically involves due diligence on title, zoning, planning approvals, environmental compliance, and existing tenancies; negotiation and execution of a contract of sale; satisfaction of conditions precedent including finance and due diligence; and settlement, including registration of transfer and any new mortgages. The timeline from contract to settlement is usually 30 to 90 days depending on the complexity of the transaction.

Question 2

What should I consider before signing a commercial lease?

Accepted Answer

Key considerations include the lease term and any options for renewal, rent review mechanisms, permitted use provisions, make-good obligations at lease end, assignment and subletting rights, outgoings and their apportionment, and any incentive arrangements. For retail premises, the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) provides additional protections and requirements that must be complied with.

Question 3

What is strata titling and when is it used?

Accepted Answer

Strata titling is a form of property ownership that allows individual ownership of part of a property (a lot) combined with shared ownership of common property. It is commonly used for residential apartments, townhouses, and commercial office suites. The Strata Titles Act 1985 (WA) governs the creation and management of strata schemes, including the rights and obligations of lot owners and the strata company.

Property Law

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