Obviously, buying, selling or leasing commercial, retail and industrial property can be a complex process. We will guide you clearly through the various processes in a straightforward and approachable way.

 

A brief guide to Irish commercial property law

 

Freehold and Leasehold

A freehold property is one where there is in effect, absolute ownership. Leasehold property is where an occupier (or lessee) has an interest in the property for a specific number of years.

 

Leases are common for commercial, retail and industrial properties. In general, these agreements can allow you an extension of your leasehold interest beyond the agreed period or the option to purchase the freehold interest. Leases can also be bought and sold though usually there are controls set by the freehold owners (or landlords) as to what purpose the property can be used for. Most commercial leases in Ireland last up to 20 or 25 years with upward rent reviews generally every five years.

 

Full lease

Commercial property can either be leased in its entirety or sublet in smaller units . If an entire building is being leased, it is usually done under a full repairing and insuring lease (FRI). Tenants may be obliged to pay insurance, rates, stamp duty etc and must also keep the building in good physical order. A structural survey should be carried out by the prospective tenant to determine the condition of the property prior to signing contracts/lease.

 

Dividing a property

If the property has several tenants, they will usually pay to the Landlord a service charge for the management, maintenance, repairs and other relevant servicing of the property.

 

Stamp Duty

Stamp Duty is payable by a tenant at the start of the lease at the rate of 1% of the annual rent. If a tenant pays a premium to acquire the leasehold interest, then stamp duty will be payable at 6% on any premium in excess of IR£60,000 ( 76,184.28).

 

Registered and Unregistered Land

All property (freehold and leasehold) is either registered land or unregistered land that is to say, it has been registered in the land Registry (or not) and has been given its own folio number.. The Land Registry is the public authority responsible for maintaining a register of all land in Ireland. Title documents show who owns the property and who might have any other interest in the property.

 

Planning Process

Local authorities have power and responsibility to grant or refuse planning permission or to grant permission subject to certain special conditions. There is a right of appeal to An Bord Pleanala if a party is not happy with a decision. Further appeals can be made through the Courts.

 

One can also pass on or sell their lease (known as an Assignment) to another person, with the landlord's consent, for the remaining years of the Term of the Lease.

 

Current legislation gives local authorities and other interested parties - including private individuals - extensive powers and rights to object to any planning developments including an injunction to halt works (known as Section 27 injunction).

 

Building Control Regulations

These regulations are intended to control building standards and promote good building practice and to impose technical requirements for safety, environmental, cultural and architectural reasons.