Buying a commercial property in Brisbane can be a strategic investment for business owners, developers, and investors. However, the process carries risks that can be mitigated with proper legal due diligence. From zoning and planning to lease reviews and contract conditions, it’s vital to ensure your purchase aligns with your objectives — and protects your interests.
1. Confirming Title and Ownership
A title search reveals the legal owner of the property and any registered encumbrances. Look for easements, mortgages, covenants or caveats that might impact your use or development of the site. It’s also important to confirm the legal description matches the property being sold.
2. Zoning and Planning Compliance
Check the local planning scheme (e.g. Brisbane City Plan) to confirm that the zoning supports your intended use. Certain zones may have restrictions on signage, hours of operation, or redevelopment. A town planner or legal review can help you interpret what’s allowed.
3. Building Approvals and Compliance Certificates
Make sure the commercial building has all necessary development and building approvals. A legal review of council records can help identify unauthorised works or outstanding notices. You should also verify fire safety compliance — including evacuation diagrams, extinguishers, and annual fire safety statements.
4. Lease and Tenancy Review
If the property is tenanted, review the lease terms carefully. Key considerations include: rent amounts, outgoings, lease duration, options to renew, and obligations for maintenance or make good. Legal due diligence also checks for any rent arrears or disputes with the tenant.
5. Environmental Risks and Site Contamination
You should check whether the site is listed on the Environmental Management Register (EMR) or Contaminated Land Register (CLR). A contaminated site can affect your ability to use or redevelop the land and may trigger clean-up obligations.
6. Reviewing the Contract of Sale
A property lawyer can identify any unusual or one-sided clauses in the contract. They will also draft special conditions to protect your interests — such as making the contract subject to due diligence, finance approval, or council consent for a particular use.
7. GST and Other Tax Implications
Commercial properties may be subject to GST, depending on the nature of the seller and the sale structure. A lawyer and accountant can advise on GST, capital gains tax (CGT), and whether the ‘going concern’ exemption applies.
Due diligence is critical when purchasing a commercial property in Brisbane. A proactive legal review can identify risks early and give you confidence before you commit. Engaging an experienced property and commercial lawyer ensures that your investment is protected — from contract to settlement.
