buying a business

[devilbliss]

I am about to buy a florist shop from my cousin. Everything is good and there will be no need to use a solicitor. Is there a standard form that I could use to State sale agreement, all debt cleared etc etc before sale and what is included in sale (that I can fill in )

[Oneeyedvic]

Do you know for a 100% certainty that everything in the shop will be yours? If any of the goods in there are on lease (eg shopfittings, till systems, refrigeration etc) then you will not get title to the goods and maty be severally out of pocket.

I don't know how much you are buying the shop for, but if you think it is worth NOT using a solicitor, I honestly think you are mad.

Just writing 'all debt cleared' will achieve nothing.

Unless you are willing to trust your cousin implicitly (in which case you can just have a straight invoice), I would really get a solicitor involved. It may cost you more, but you are far safer in the long run.

[Eve]

I do this kind of thing for a living and I'd very strongly recommend that it is done properly as there is so much more to it than most people realise and so many things that could potentially go wrong.

A lawyer will have a secialised document which can be tailoured to your needs and agree all kinds of things and ensure that it covers all the relevant pieces of legislation which need to be complied with. The potential issues that could arise could well end up costing you far far more than having it done properly in the first place.

For example would you know how to check if there are any charges on the property, find out if there are any onerous restrictions, if there was a problematic planning history and say notices on the property for works to be done, lack of compliance with restrictions on the property, protect against the provisions of the insolvency act, comply with employment legislation, deal with VAT issues, deal with stamping and registration formalities, this list is by no means exhaustive and you could end up with all kinds of problems which een if solvable could be very time consuming and costly. The transfer could even be invalid if not done properly! You may only find out when you tried to sell or charge etc... the property that the trasnfer was invalid and it's not legally yours.

Could you also pick up on any issues that may affect the value of the property and your ability to sell or charge it? In either case the lawyers who would act for lender or seller could discover a minefield of problems you would have to try and resolve and more than likely at your own cost. It may even end up in you findign it very very difficult and costly to sell or charge the property or deal with it in other ways.

[Eve]

There are just so may things that could go wrong and would need checking, you could end up taking a property with all kinds of legal problems. Please please see a lawyer and get it done properly. Make sure they do commercial property work as well, i would warn against temptation to get a cheaper deal with a lawyer who does residential property as commercial property is it's own specialism esp if a sale of a business as well.

Try http://www.lawsociety.org.uk/choosingandusing/ findasolicitor.law to find someone.

Some places have free legal surgeries and free initial interviews and there are rules in place for firms and the cost infirmation they have to provide in an initial letter (called a client care/Rule 15 letter) and throughout the transaction.

You could ask for a quote but make sure it includes fees AND what we call disbursements (charges for things like copies of the title registers, searches etc...) and lets you know what VAT is charged on so you get a realistic picture of the costs involved.

I don't want to sound like I'm lecturing you and don't want to scare you but just wanted to let you know what you could be letting yourself in for.

Hope it all goes OK for you :)