How Commercial Conveyancing Differs From Residential: What You Need to Know
If you’ve ever bought or sold a home on the Sunshine Coast, you likely feel somewhat familiar with the settlement process. You sign the contract with the help of a conveyancing solicitor, the building and pest inspector does their part, the bank approves the loan, and eventually, the keys change hands.
However, in commercial conveyancing, the rulebook significantly changes. At Bradley & Bray, we often tell our clients that while residential and commercial transactions share the same goal, which is the transfer of title, the journey to get there requires a completely different set of tools. Here is what you need to know about the differences between these two property transactions.
The Contract: Standard vs. Bespoke
In residential & commercial property circles, the contract is the starting point. For a house or unit, we almost always use the standard REIQ contract. It’s familiar, and most people know what to expect regarding cooling-off periods and standard conditions.
In commercial conveyancing, “standard” is a relative term. While REIQ commercial contracts exist, they are often heavily modified with special conditions. Unlike residential deals, there is generally no statutory cooling-off period for commercial property in Queensland. Once the hammer falls at auction or the exchange occurs, you are generally locked in. This makes the pre-signing review by a property lawyer even more critical than in a residential setting.
Furthermore, as of August 2025, the new Property Law Act 2023 (Qld) has introduced a mandatory Seller Disclosure Scheme. This means that for both residential and commercial deals, a seller must now provide a formal Disclosure Statement and prescribed certificates before a buyer signs the contract. In commercial real estate, however, if the transaction is over $10 million, a buyer can choose to waive these requirements—adding yet another layer of strategic negotiation to the contract phase.
Due Diligence: Looking Under the Hood
When comparing residential vs commercial property transactions, the level of investigation required is perhaps the biggest differentiator. In a residential deal, you’re mostly concerned with whether the back deck is sturdy and if the pool fence is compliant.
Commercial due diligence goes much deeper into the “bones” of the business and the land. You aren’t just looking at the physical structure; you’re looking at multiple aspects, including:
Permitted Use and Zoning: Just because a building looks like a cafe doesn’t mean the Sunshine Coast Council allows it to be used as one. Our team of conveyancing solicitors checks the planning schemes to ensure your intended business can actually operate there.
Environmental Reports: This is rarely an issue in residential property, but in commercial property, you need to know if previous tenants (like a dry cleaner or a mechanic) left behind contaminated soil.
Service Agreements: You may be inheriting contracts for lift maintenance, fire safety, or security systems that you need to review before taking over.
The Complexity of GST
If you sell your family home, GST is rarely part of the conversation. However, in the debate of commercial versus residential, GST is a heavyweight factor.
In commercial deals, GST is often applied to the purchase price unless the “Going Concern” exemption applies. For example, if you buy a tenanted commercial building where the lease continues after settlement, the transaction might be GST-free. But if the building is vacant, you might need to find an extra 10% on top of the purchase price to cover the tax. Getting this wrong can lead to a massive, unexpected bill from the ATO, which is why we coordinate closely with your accountant during the process.
Leases: The Living Asset
In a residential sale, a tenant usually means a simple Form 18a General Tenancy Agreement. In commercial conveyancing, the lease is often the most valuable part of the asset.
If you buy an investment property, the strength of the commercial lease determines the value of the building. We have to review the terms meticulously. Who pays the outgoings? Are there options to renew? Is there a personal guarantee from the tenant? Seasoned conveyancing lawyers like us also manage the formal assignment of a lease or the “attornment” (the formal notice to the tenant to pay rent to the new owner), which adds a significant layer of paperwork not found in residential deals.
Financing and Timelines
Finally, the clock ticks differently for residential and commercial settlements. Residential deals often settle in 30 days. Commercial deals frequently take 60 to 90 days because banks are much more rigorous. They don’t just value the bricks and mortar; they also value the “weighted average lease expiry” (WALE) and the financial health of the tenants. Because the lending requirements are stricter, the “Subject to Finance” clause in a commercial contract needs to be drafted carefully.
Final Thoughts
While the Sunshine Coast offers incredible opportunities for property investment, treating a commercial purchase like a residential one is a recipe for stress. The “buyer beware” principle is much stronger in the commercial arena.
Whether you are a seasoned developer or a small business owner leaping into owning your first premises, having a legal team that understands the nuances of residential versus commercial property law is essential. At Bradley & Bray, we’ve spent decades navigating these waters, ensuring that when our clients “walk in,” they know exactly what they’re getting.
So if you are venturing into the commercial real estate market, reach out to the team at Bradley & Bray today. We make the complex simple, so you can focus on growing your business while we handle the fine print.
Disclaimer: This article is general in nature and does not constitute legal advice. If you require legal advice in relation to your personal circumstances, you must formally engage our firm, or another firm to provide legal advice in relation to your matter. Bradley & Bray lawyers take no responsibility for any use of the information provided in this article.
