What is a pre-acquisition survey?

If you buy or lease a commercial property, you must always do your due diligence. A critical part of that process is conducting a pre-acquisition survey. A pre-acquisition survey gives you a thorough understanding of the internal and external condition of the building, its suitability for your intended purpose and the costs that are likely to arise. Based on the survey’s findings, you can make an informed decision about the risks and how or if you want to proceed with the purchase.

There’s a lot involved in pre-acquisition surveys, so we’re going to explore the process and discuss the benefits to help you buy and lease commercial property with confidence.

Understanding pre-acquisition surveys

A pre-acquisition survey is a detailed inspection of a property, performed by a Chartered Building Surveyor, to determine whether it’s appropriate for your needs and represents a sound investment. The survey will give a you thorough and robust understanding of the condition of the building, the risks involved, the remediation work required and the costs that will or are likely to arise.

The information contained in the report will help you make an informed decision, firstly about whether you want to go ahead with the purchase, but also on how much the property is worth. The report’s findings will enable you to negotiate with the vendor or landlord and mitigate liability for the issues the report identifies.

What does a pre-acquisition survey involve?

The surveyor will inspect multiple aspects of the property and produce a thorough survey report including photographs and details of:

• The internal and external condition of the property
• The property’s structural integrity
• Any harmful materials they identify
• Any legal compliance issues
• Specialist investigations, such as drainage surveys or land contamination assessments, you may need to carry out
• Any current defects, including the remedial work required and expected costs
• The future maintenance requirements
• The priority order for repairs 

All the observations will be described in detail and be accompanied by pictures where appropriate. That will give you a clear understanding of what you are taking on, what you can do about it and how much it’s going to cost. 

Who can carry out a pre-acquisition survey?

Pre-acquisition surveys should be performed by commercial chartered building surveyors that are accredited by a professional organisation such as the Royal Institution of Chartered Surveyors (RICS). That gives you the peace of mind that they have the knowledge, experience and training to provide the highest quality service.

RICS and other organisations like the Chartered Institute of Building (CIOB) have strict standards and codes of conduct surveyors must meet. That ensures the surveys they produce can be trusted by all parties and relied on in price negotiations. 

Why do I need a pre-acquisition survey?

RICS pre-acquisition surveys mitigate the inherent risks in buying a property or signing a commercial lease. Without them, tenants and investors can be left with significant liabilities and pay over the odds for a property with unidentified defects. By conducting a survey, you can save yourself a lot of money and stress.

The benefits of conducting a pre-acquisition survey include:

• Being able to buy or lease a property with the confidence of knowing what repairs are required and how much they’re going to cost
• Having a firm and factual basis for price negotiation
• Understanding whether a property is suitable for your requirements
• Knowing what risks are present and their priority order
• Having a professional summary of the risks so your solicitor can send the necessary enquiries to the seller
• Identifying compliance and safety issues such as asbestos, land contamination issues and deleterious materials

Invest with confidence

Whether you’re a first-time commercial tenant or an experienced investor, our RICS pre-acquisition surveys enable you to progress a property transaction with your eyes wide open. Find out more about our UK-wide building consultancy services and contact our RICS-qualified Surveyors for advice about building surveys across all commercial property types and sectors.