Once a Contract for Sale or Purchase of Business has been exchanged it is usually binding on both parties.
Prior to exchange it is essential the following are addressed:
- Is the contract conditional on finance approval?
- If so, what are the conditions for obtaining the approval?
- If no, are there any conditions imposed by the Bank that must be in the contract (eg. right of entry and mortgage of lease)?
- Is the structure correct and the loan in the name of the right parties?
As the approval number is attached to premises, the terms and conditions of the lease is one of the most important aspects of pharmacy ownership.
Pharmacies are governed by the Retail Leases Legislation in each State.
Landlord approval is required to the assignment of lease or onsale or purchase of a business.
It is important to consider:
- the term of the lease and any options;
- rent and outgoings and increases;
- bank guarantee/personal guarantee;
- approved use;
- demolition/relocation clauses;
- make good clauses.