Q: DO I NEED A CONTRACT TO SELL MY COMMERCIAL PREMISES?

A: Real Estate law is focused on consumer protection. Therefore, it is against the law to advertise a residential property without a contract - even for an agent to say a property is coming up for sale in your street prior to the contract being drafted is a breach of the legislation. When it comes to Commercial Property, however, it is considered that commercial buyers are more experienced in their dealings and are less inclined to require the presence of the law to protect their interests. Therefore, the consumer protection measures do not extend to commercially zoned properties. Your commercial property can therefore be marketed by your agent WITHOUT a Contract for Sale of Land, which can be prepared once the terms have been negotiated with your purchaser.

The legal answer to your question, however, is different to the practical and sensible answer. Once you have finalised negotations you would be well advised to lock the deal in as quickly as possible. A delay in drafting complex legal clauses would be very frustrating at that touchy phase of the transaction. It would be prudent, therefore, to instruct your legal team at the outset, and give yourself the opportunity to structure your marketing campaign around sound legal advice.

For example, if you would like to advertise that your restaurant seats 100 guests and an additional 25 on the pavement, you will be well advised to ensure your legal right to use the pavement is in place, in order to prevent a misrepresentation claim.


Please remember this advice applies to New South Wales Residential property only. To confirm your particular circumstances, please contact Liberty Conveyancing