Developing commercial properties require significant financial investments and a thorough understanding of the legal requirements including the relevant zoning laws, council development conditions and so forth.
The property development procedure involves certain stages. Though complicated and extensive, the process to develop commercial property can be made easier by following the given guidelines:
(a) Planning Stage: This stage involves preparing a business plan that covers; the costs for proposed development, existing market conditions and competitions, operating costs, financial projections, marketing strategy, risk assessment and profit and loss estimation.
(b) Raising Finance: Once you are through with your planning stage, you opt to raise finance for your project development. You can raise capital for your project by borrowing money from banks or financial institutions.
(c) Pre Purchase or Site Finding Stage: This stage involves the looking out for and finding the right land or site that can be used for developing the commercial property. When determining whether a site is suitable for development you should consider; the location, accessibility and council zoning.
(d) Due Diligence Stage: This stage requires you to conduct extensive research with regard to ownership and title of the proposed land or site, assessment of the site in terms of yield, planning or development constraints, infrastructural constraints, environmental compliances and soil testing and disposal. If you are buying an existing property, it is imperative that you check the relevant documents relating to tax returns, insurance and existing loans. You should also consider making formal enquiries and inspect public records.
(e) Purchase Stage: Once you are satisfied with your site assessment research and the commercial profitability of the site, you may proceed to negotiate with the seller the best possible purchase price for purchasing the site or the land.
(f) Planning and Development Approval Stage: You should draw up plans for your project with your architects that is suitable to the applicable planning codes of the zone or State where the land or site is located. You also need to make a development application to your local council in order to obtain development or council approval(s) prior to starting your project development.
(g) Working Drawing and Documentation: Once you have been granted a development approval, you are required to obtain a building permit or a Construction Certificate and the same can be acquired by documenting the working drawings. A Construction Certificate will be issued to you approving or modifying the methods and materials you would use for construction purpose.
(h) Pre-Construction and Construction Stage: The pre-construction stage involves selection of prospective builder who can help you develop your project at a fair price. Once you are done with requirements of your pre construction stage, you finally start building the project on the site.
(i) Completion: Upon completion, you can lease out the property or put it on the market for sale.
At Owen Hodge Lawyers, we have a team of commercial property experts with the experience and the resources to advise you on the legal aspects of property development.
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Commercial Contracts Between Businesses for Supply or Sale of Goods
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Commercial Loan Agreements
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