Best practice in transactions
January 22, 2013
With the fixed value rule (see previous blogs) now in play the stakes have been cranked up when buying or selling commercial real estate. But what approach should we take when advising our clients?
We would always advise that the parties to a transaction have the capital allowance conversation as early as possible. If the transference of allowances is covered during the sale negotiations shifts in value can be reflected in overall transaction or in extreme cases unhappy parties can walk away.
In the transactions we have been involved in we have often found it beneficial to try and by pass the intermediaries (solicitors) and talk directly to the stake holders. Often the solicitors can over complicate this issue by not effectively relaying the respective party’s position and sometimes in extreme cases worrying about their own liability over the interests of their client. Commercial agents are normally a good conduit to reach the vendor/purchaser as they are generally motivated to make the deal work for.
Here at STax we have assisted both buyer and sellers in protecting their positions’ and negotiating a satisfactory outcome for all parties. If you would like to talk through a case or just discuss these points further please don’t hesitate to contact me or visit us at www.STaxUK.com.