Buying Commercial Property in Victoria? 3 Hidden Legal Traps to Avoid Before You Sign

Purchasing commercial property is a milestone for any business or investor, but it is vastly different from buying a residential home. In Victoria, commercial transactions carry unique legal responsibilities that can quickly turn a profitable venture into a costly headache if overlooked.

Before you commit to a contract of sale, make sure you and your legal team have fully vetted these three critical areas:

• 1. The GST Complexities: Unlike residential properties, commercial real estate transactions are often subject to Goods and Services Tax (GST). Depending on how the contract is structured, you could find yourself unexpectedly liable for an extra 10% on top of the purchase price. Exploring whether the transaction qualifies as a "Going Concern" is vital to avoiding unexpected tax bills.

• 2. Tenant Leases and Commercial Terms: If the property is being sold with an existing tenant, you are buying the lease along with the bricks and mortar. Reviewing the lease terms, rent review mechanisms, options to renew, and any outstanding tenant disputes is crucial before settlement.

• 3. Zoning and Permitted Use: Never assume your intended business operations are allowed. You must verify the local council's zoning restrictions. If your business type isn't a "permitted use" under current zoning, you face a lengthy, uncertain planning permit process.

The Crownmark Advantage: Property transactions move fast, and billable hours shouldn't slow your momentum. Through Crownmark Assured Pricing (CAP), we handle commercial conveyancing and contract reviews under an agreed, fixed-fee structure. You get absolute cost certainty from day one, so you can focus on the investment, not unexpected legal bills.