A commercial sale is the sale of a commercial or industrial property or business. It involves a lot more than just advertising your business or commercial property and selling to a purchaser who appears to offer a good price. Many Vendors are often sued or are on the receiving end of legal claims and disputes, as a result of representations made in Sale of Business or Sale of Property advertisements.
There are numerous tax considerations including, among others, GST, Income and Capital Gains Tax, depreciation and employee tax, superannuation and leave entitlements. All assets of the business or property must be considered in the sale including, among others, goodwill, plant and equipment, premises lease, leased assets, intellectual property, business name, know how and customer lists, stock in trade, work in progress and debtors. The position of employees in the business is also very important. For a property sale, it is also important to be advised about fittings and fixtures as some may or may not be legally removed by yourself or the outgoing tenant or subject to the repair of any resultant damage. Any encumbrances such as a mortgage over the property or a charge over assets will also need to be considered. If you are selling a business with a lease and the property is mortgaged you will usually also need the mortgagee’s consent to any new lease.
A Commercial Lawyer or Conveyancing Lawyer will tell you that commercial sales involve a wider spectrum of technical legal aspects, including, amongst other things:-
- Tax implications e.g. CGT (capital gains tax), GST (goods and services tax), income tax and land tax
- The transfer of leases and hire agreements
- Valuation and transfer of goodwill
- Valuation and transfer of plant, equipment and stock
- Restraint of trade clauses and restriction on vendor’s competition
Skilled Lawyers who have a full and proper understanding of the law are the best equipped professionals to deal with a commercial sale.
At Navado Lawyers and Solicitors, we have over a decade of experience assisting in the sale of a diverse range of commercial and industrial properties and businesses. We are able to guide and assist you in the commercial, tax and other legal aspects of your sale. Contact our office on (02) 9233 4048 and arrange an appointment with one of our experienced Solicitors today.