40 - Buying a commercial property - legal essentials you need to know

Navigating Commercial Property Purchases for Australian Businesses In this episode of Business Know How, host Melissa Bush offers practical legal guidance on buying commercial property in Australia. Covering topics such as different property types, due diligence steps, essential legal frameworks, and future planning, Melissa aims to equip business owners with the knowledge to make informed and strategic property investments. With over 30 years of legal experience, she emphasizes understanding key laws and obtaining independent legal advice, ensuring business owners are well-prepared for this significant financial and strategic move.

00:00 Introduction to Business Know How

00:58 The Importance of Buying Commercial Property

02:07 Types of Commercial Properties

04:14 Due Diligence in Property Purchase

05:34 Zoning and Planning Considerations

06:08 Finance and Tax Issues

06:55 Future Planning for Your Business

08:27 Case Study: Sinks Land Developments

10:07 Legal Framework in New South Wales

13:32 Key Takeaways and Conclusion

Download our Buying Property Checklist.

Core NSW Property & Conveyancing Laws

Conveyancing Act 1919 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1919-006
Governs contracts for sale, deposits, settlements, and property transfers.
Real Property Act 1900 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1900-025
Covers the Torrens Title system, land registration and dealings.

Retail & Leasing

Retail Leases Act 1994 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046
Sets out rights and obligations for landlords and tenants of retail premises, including disclosure requirements.

Planning & Zoning

Environmental Planning and Assessment Act 1979 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1979-203
Provides the framework for zoning, development approvals and planning certificates (Section 10.7).
Local Government Act 1993 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1993-030
Outlines the role of local councils in land use, development approvals and compliance.

Strata and Shared Ownership

Strata Schemes Management Act 2015 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-2015-050
Covers the management and operation of strata schemes, owners corporations, levies and by-laws.
Strata Schemes Development Act 2015 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-2015-051
Regulates the subdivision, consolidation, and redevelopment of strata lots.

Finance, Tax & Duties

Duties Act 1997 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1997-123
Covers stamp duty payable on property transfers.
Land Tax Management Act 1956 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1956-026
Sets out land tax obligations and exemptions.
Taxation Administration Act 1996 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1996-097
Provides for the administration of NSW state taxes, including duties and land tax.

National / Corporate Context

Corporations Act 2001 (Cth)
https://www.legislation.gov.au/Series/C2004A00818
Governs company operations, director duties and execution of documents (relevant to guarantees and contracts).
Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth))
https://www.legislation.gov.au/Series/C2004A00818
Provides consumer protections that can, in some cases, apply to small business transactions.

Optional Extras

Building and Construction Industry Security of Payment Act 1999 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-1999-046
Relevant if you intend to build or renovate after purchase.
Work Health and Safety Act 2011 (NSW)
https://legislation.nsw.gov.au/view/html/inforce/current/act-2011-010
Outlines obligations for maintaining a safe workplace on your premises.