Warning To Buyers About Hidden Risks as Due Diligence Becomes Critical in Commercial Property Deals

UK commercial property solicitors are urging investors, landlords and business owners to take a closer look at the due diligence process, warning that skipping vital checks is one of the biggest causes of disputes, delays and unexpected costs in commercial transactions.

As activity picks up across the industrial, office and mixed-use sectors, legal experts say many deals are being rushed — and with it, critical risks are being overlooked.
What due diligence really involves

Due diligence is far more than a “quick title check”. It is a detailed investigation into every legal, financial and physical aspect of a property before a buyer commits to the purchase.

Solicitors typically review:

• Title documents – confirming ownership, rights of way, covenants, access rights and any restrictions that could affect development or occupation.
• Existing leases – assessing rent, service charges, break clauses, repair obligations and rent review provisions where the property is let.
• Searches and enquiries – including local authority, drainage, environmental and planning searches to identify issues such as contaminated land, unauthorised alterations or road adoption problems.
• Planning and regulatory compliance – checking whether the property has the correct planning use class, building regulation approvals and fire safety compliance.
• Environmental risks – from asbestos in older buildings to flood risk in vulnerable areas.
• Financial and tax considerations – including VAT status, capital allowances and Stamp Duty Land Tax treatment.

Increasing complexity in today’s market

Solicitors report that due diligence has become more complex in recent years due to tightening environmental regulations, sustainability obligations and energy performance requirements affecting landlords and investors.
“EPC standards, fire safety rules and environmental liabilities are now central to legal investigations, not an afterthought,” one commercial real estate solicitor said. “Buyers need to understand the long-term cost of compliance before they sign.”

A growing risk for SMEs and first-time investors

Due diligence in commercial real estate has become more complicated in recent years as environmental regulations, sustainability requirements, and energy performance standards have tightened. Issues like EPC standards, fire safety, and environmental liabilities are now key parts of the legal process rather than being considered last-minute concerns. Buyers need a clear understanding of the long-term compliance costs before completing a deal.

Why early legal instruction matters

The report highlights the importance of bringing solicitors into the process early — even before the Heads of Terms are finalised — as this gives buyers a better chance to negotiate favorable terms and steer clear of last-minute complications. Commercial property lawyers advise buyers, seasoned or otherwise, to see due diligence as a vital layer of protection rather than just a formality. With regulations tightening and competition rising in the UK commercial property market, thorough due diligence is increasingly seen as a key method for buyers to protect their investment and improve their chances of long-term success.

If you need help and guidance with regards to due diligence for commercial properties, contact our team today on 01926 491181 or email: commercial@moore-tibbits.co.uk