David Gilman is partner in charge of Blacks Connect
If you already operate in the commercial mortgage and finance sector, you will be well aware that it is very different to residential.
It’s not always easy to find a conveyancer that truly understands the commercial sector, has the experience needed to handle these, often complex, cases, and has strong links with lenders – so choose carefully.
Some commercial cases can involve other areas of the law, so a full service law firm will be well placed to accommodate any potential legal issues that come up.
Finding a good commercial partner is key, so you can have confidence recommending them to your clients, and receiving a referral fee for doing so.
If you haven’t instructed a commercial conveyancer before, here are five things you need to know first:
- It's not just purchases and sales
Legal work isn’t only carried on commercial property purchases and sales, but also on other commercial transactions. This includes the sale or purchase of a business, lease drafting, remortgage, negotiation of a new lease, or the assignment of a lease to a new tenant. Some of it may not technically be conveyancing, but it is all commercial legal work that you can get a referral fee for introducing.
2. You will have clients that need it
If you have clients that run their own business, it’s likely they will require one or more of these services at some point. It’s a missed opportunity not to ask. But first make sure you find yourself a good commercial legal partner, that you are genuinely happy to suggest they use.
3. It can take longer
Let’s not beat around the bush - commercial conveyancing can take longer than residential. There isn’t an average timeframe because every case is completely different. Some go through very smoothly; others require a lot of legal work. Of course, there’s no such thing as vanilla conveyancing in residential either – and those who suggest there is are doing your clients a disservice. But as a general rule of thumb expect a commercial case to take longer to complete.
4. The rewards are greater
While commercial mortgage business may be more time consuming for brokers, and solicitors, it is more lucrative. Once you factor in the mortgage proc fee, and the conveyancing referral fee, it becomes clear that a few cases can have a big impact on your business’s bottom line.
5. It's highly specialised and needs an expert
Residential conveyancing is complicated, and commercial even more so. There are no ‘normal’ cases and this means that expertise really matters. It also means that your chosen commercial conveyancing partner must have strong ties with commercial lenders and understand exactly what they require. Experience counts in this sector so it’s vital you partner with a firm, like Blacks Connect, that you can trust to make the right judgement calls on your clients’ behalf.
