Protecting an Owner-Occupier Commercial Client Through Multiple Obstacles

by | Case Studies, Commercial

COMMERCIAL OWNER OCCUPIER CASE STUDY

 

IN THE CLIENT’S OWN WORDS

“Property Wizards handled with expertise and finesse the complex, multi-layered and delicate negotiations with multiple parties involved and a huge range of emotions, priorities and expectations. He exercised the utmost care, empathy, attentiveness and exemplary communication skills and achieved an immensely successful outcome for me.

The team researched numerous important details and related these clearly and faithfully to me. Over the 3-months to settlement, they were on hand at all hours to answer queries from me and my staff and he also arranged an extra two viewings for me before the final inspection. 

At all times during this complex purchase, I felt my best interests were being considered and no stone was left unturned to protect me and get to the bottom of the many unusual surprises involved.

It was a real pleasure to work with such a friendly and totally professional person who went over and above. I certainly could not have achieved this on my own.”

– Client, North Fremantle

 

PRICE

$3,450,000

 

PROPERTY

Stirling Highway, NORTH FREMANTLE

 

ACCOMPLISHMENT

Acquiring a magnificent property for our client while overcoming multiple obstacles to protect our client and get her the best result.

 

THE CHALLENGE

Our client required new company premises to suit the character of her business and keep her team enthusiastic to work there.

 

THE PROPERTY

A magnificent heritage property in North Fremantle suited perfectly. Property Wizards viewed it with our client and determined that the seller sought a realistic price, significantly reduced from previous expectations. There were competing buyers so speed was essential. After due diligence, Property Wizards quickly started negotiations and following five offers/counter-offers, our offer was accepted at $200,000 less than the seller’s expectation and substantially below the previous advertised price.

 

THE PROTECTION

Our comprehensive due-diligence included:

  • Price appraisal, using three methods, due to the unusual nature of the property.
  • Studying the title, strata plan, management statement and 10-year maintenance plan.
  • Examining easements allowing neighbours driveway access.
  • Obtaining written confirmation our client could occupy without planning approval.
  • Checking for strata budget anomalies.
  • Obtaining written heritage restrictions advice.
  • Confirming NBN node distance for critical internet speed.
  • Local authority checks including approvals, current/future zoning, surrounding development approvals, planning policies, sewer, water, gas, power, bushfire, contamination, floods, crime, roads and more in a 45-page due-diligence report.

 

THE CHALLENGES

  • The seller withheld tenancy documents and pre-contractual disclosures until offer acceptance. Our solution was to incorporate these in the contract, with termination options if unsatisfactory.
  • Upon receiving the requested documents post-acceptance, it became clear that documents were missing and incorrect. Protecting our client required extensive liaison with the strata manager, who was also the seller, and further research and negotiation.
  • Although the Information Memorandum stated that the lease had 1.6 years remaining, documentation revealed that a new three-year lease with an eight-year option had just been signed, with the tenant occupying a portion of the premises our client had envisaged as a boardroom. After discussions with both property manager and tenant, we facilitated a solution that worked well for all parties.
  • We studied the strata management statement to advise on relevant risks.
  • The strata AGM minutes revealed significant future costs to remediate drainage problems. After obtaining and studying the relevant quotes and maintenance plan, the amortised share of costs appeared acceptable.
  • The precontractual attachment omitted parts of the purchased strata area and we corrected this.
  • Before settlement, the seller removed numerous items to sell, which included some of the extensive list of high-quality chattels we had included in the contract. Property Wizards insisted he either pay for replacement or have them reinstated. He chose the latter, thus minimising inconvenience and disappointment for our client.

 

THE RESULT

Our client has the dream premises she hoped for, achieving this with Property Wizards taking care of it all for her and protecting her interests along the way.

 

FROM THE SELLING AGENT

“…he took the trouble to understand everything about the property and its inclusions, to the benefit of his client. Due to his sincere manner, I was happy to obtain the information in answer to his questions and the resulting deal was successful for seller and buyer. Property Wizards negotiated diplomatic solutions to many problems that arose during the deal, due to complex arrangements that had been put in place by the seller. He also pursued extensive due diligence, sparing no effort, and took the trouble to ensure a good outcome for all parties. Throughout the process he went over and above to advance and protect the interests of his client.”

– Brett Wilkins, Director, Ray White Commercial WA

 

GETTING STARTED

If you want to learn more about property investment strategies, or you’d like to clarify your investment strategy and goals, why not complete our Getting Started form to get the ball rolling.

 

Property Wizards believes everyone has the right to the knowledge to help you accumulate wealth, no matter your background, education or income.

We can help you unlock the potential of the real estate market for your family through savvy property selection, negotiation on price and conditions, development expertise and the magic of robust research.

Regardless of market conditions, our research, local knowledge, and access to silent sales means we find the hidden gems that can outperform the market in capital growth and rental returns for long term wealth creation.

Importantly, we’re able to provide property investors and homebuyers with the same level of representation that property sellers have benefited from for years.

Your property portfolio is your path to financial freedom and the lifestyle you’ve been longing for.

Property Wizards takes away the stress of buying a property and saves you money at the same time. We can show you how, or you can sit back and let us do all the hard work for you.