Property Insolvency Sales Solicitors

A property insolvency sale is a transaction where commercial property is being sold as part of an insolvency process, such as administration, receivership or liquidation. The sale is typically conducted by an insolvency practitioner acting on behalf of creditors, rather than the original owner. These transactions often move quickly and can involve additional complexity around title, existing tenancies and the terms on which the sale takes place. Buyers in particular need to understand these differences before committing to a distressed acquisition.

Buying property from an insolvency practitioner carries different risks to a standard transaction. The insolvency practitioner will typically sell with limited title guarantee (meaning fewer legal protections than in a standard sale) and give very few, if any, warranties, meaning the usual buyer protections are significantly reduced. Due diligence is therefore critical. We investigate title carefully, review any existing tenancies, carry out searches and advise you on every issue we identify, so you understand fully what you’re taking on before you exchange contracts.

When a commercial tenant enters administration, the administrator has an initial moratorium period which may restrict the landlord’s ability to forfeit the lease or recover rent. In a liquidation, the liquidator may disclaim the lease if it’s viewed as an onerous asset, which brings the lease to an end. We advise landlords on their rights in both situations, including options for recovering possession, pursuing guarantors or re-letting the premises to a new tenant. See our Landlord & Tenant (Commercial) page for further information on tenant default and insolvency.

Yes. Where a borrower has defaulted on a commercial mortgage, a lender may need to take steps to enforce its security. This can involve appointing a Law of Property Act receiver (an appointed manager authorised to deal with the property on behalf of the lender), taking possession of the property and ultimately managing or selling the asset to recover the outstanding debt. We advise lenders at each of these stages, including on the legal requirements for the sale and the distribution of proceeds. Where the matter also involves contested issues, our property litigation team provides additional support.

Where property is being sold in an insolvency context, specific legal requirements apply. The insolvency practitioner has powers and duties that differ from those of an ordinary seller, and transactions are typically conducted on an “as is” basis with limited warranties and representations. Timescales can be tighter than in a standard sale, and there may be existing tenants or creditors whose interests need to be considered as part of the process. We have experience acting on both sides of these transactions and can guide you through the process efficiently.