A vital part of any commercial Property agreement is the deed itself, so it is essential that every commercial landlord holds the deeds to a commercial property and understands what they contain.
Commercial property deed restrictions
One of the most important features of a commercial Property Deed is that it contains restrictions for the use and upkeep of the property, which must be adhered to by the landlord and any commercial tenants.
As in leasehold residential properties which divide maintenance costs and responsibilities, the commercial property deed serves as a means to establish rules for the maintenance of the property’s common areas.
Common areas include buildings or pieces of land that are shared by different individuals, such as car parks, to which all individuals have a legal right and must therefore be jointly responsible for any upkeep – whether they are carrying out maintenance themselves or employing a property management service to oversee all necessary tasks on their behalf.
This is often referred to as a common area maintenance (CAM) regime, and it helps to make sure that the commercial property is being maintained to a high standard and that all property owners are paying their fair share of expenses.
If you feel as though your property is not being maintained to the correct standard, that your tenants are not fulfilling their maintenance obligations, or both, it is wise to consult a solicitor.
Commercial property deed: how to change one
The restrictions set out in a commercial property deed generally apply to all successive owners and tenants, not simply those who set it out. If you want to change the existing commercial deeds of a property, check that you can do so before buying it.
If you are renting or leasing your commercial space, ensure that you review the deed restrictions before doing so. You must make sure that you are upfront with your tenants and that you are personally aware of the responsibilities of all parties.
Of course, you can also use restrictions to limit your tenants’ use of the property should you desire to do so. Should the matter require expert assistance to help with negotiations,
it is advisable to seek out professional landlord and tenant services to resolve any disputes quickly and smoothly.
Contract for deed commercial property
You may also encounter the term ‘contract for deed’ in relation to renting or leasing commercial property space.
A contract for deed is a contract for land used specifically for commercial purposes. The process and legalities of acquiring a contract for deed commercial property are as follows:
- The buyer submits the down payment (if necessary), then takes possession of the property and begins to make payments on it
- Until the property is paid off, the seller retains the title to the property
- Once the buyer has paid in full, the seller is obliged contractually to give them equitable interest in the property while retaining the legal title
If you would like more information regarding a commercial property deed and its contents, get in touch and our team will be happy to answer your questions.
The post Commercial property deed: What does it contain? appeared first on Commercial Property Management London | Martin Slowe.
