In the world of property transactions, documentation is far more than just a legal formality—it’s the backbone of a successful deal. Yet, despite its importance, missing or incomplete building records remain a common issue that can cause significant delays, renegotiations, or even collapsed transactions.
The reality is that compliance and due diligence processes are becoming more demanding, with both buyers and regulators requiring transparency. Without proper documentation, you risk turning a straightforward sale into a lengthy, costly ordeal. Here, we’ll delve into the key documents most often missing, the financial and legal implications of documentation failures, and how being proactive can save you from unnecessary headaches.
The Most Commonly Missing Documents
Several types of building documents are frequently missing, incomplete, or delayed in property transactions. These gaps are often the primary reason deals hit roadblocks:
Fire Risk Assessments – Especially crucial in today’s regulatory landscape, particularly for high-rise and residential properties following the Grenfell tragedy and the introduction of the Building Safety Act.
Asbestos Surveys – Required for many commercial buildings, especially older ones, but often overlooked or outdated.
Gas and Electrical Safety Certificates – Vital for ensuring compliance with health and safety regulations, yet frequently missing or not updated.
Maintenance Records – A full history of routine and reactive maintenance is expected by buyers but is often poorly tracked or incomplete.
Cladding and Façade Reports – Post-Grenfell, external wall systems have been under intense scrutiny, but cladding reports are still one of the most common missing pieces during transactions.
Planning Permissions and Building Control Approvals – Essential for any significant renovations or developments, but often incomplete or lost.
Lease Agreements – Full copies of leases, including any renewals or variations, are often missing, particularly for multi-tenanted buildings.
Energy Performance Certificates (EPCs) – Legally required for selling or letting property, but still missing or outdated in many deals.
Implications of Missing Documentation
The absence of these key documents doesn’t just stall the sale; it has tangible, expensive implications. Buyers are increasingly cautious in the face of missing information, knowing that it signals potential future risks, whether related to safety, compliance, or long-term maintenance costs.
Repeat Surveys and Additional Costs
In many cases, the only solution to missing or outdated documentation is to commission repeat surveys to fill in the gaps. This can include anything from arranging a new fire safety inspection to commissioning a full asbestos report. According to RICS, the cost of a fire risk assessment can range from £300 to £2,000, depending on the complexity of the building. Asbestos surveys, particularly for large or older commercial properties, can cost upwards of £1,500 to £5,000.
Beyond the immediate financial impact, repeat surveys mean additional delays, often stretching deals out by weeks or even months. These delays can result in significant holding costs, as well as rising legal fees as solicitors negotiate over missing or pending documents.
For buyers, these surveys present an extra layer of risk. They may discover previously unknown issues, requiring them to rethink their offer or even walk away from the deal. The longer the process drags on, the more likely a buyer will lose confidence and pull out altogether.
Holding Costs: The Financial Burden of Delays
While surveys are commissioned and documents are sourced, sellers face escalating holding costs—those unavoidable expenses tied to owning the property longer than expected. These include ongoing maintenance, security, utilities, and business rates, all of which continue to accumulate as the transaction stalls.
According to JLL, holding costs for vacant commercial properties can range between £3 to £6 per square foot per year. For a 50,000 square foot building, that’s between £150,000 to £300,000 annually. Delayed transactions can easily extend for months, compounding these expenses.
In addition to these costs, property left unsold may depreciate, meaning that even when the sale finally goes through, it may be at a reduced value compared to the original offer. All these factors make delays caused by poor documentation far more expensive than most sellers anticipate.
Legal Fees and Further Delays
When key documents are missing, solicitors on both sides of the deal are drawn into extended negotiations, which inevitably drive up legal fees. The Law Society of England and Wales estimates that legal fees for commercial transactions typically range from £10,000 to £50,000, depending on the complexity of the deal. When missing documentation becomes a point of contention, these fees can spiral.
Moreover, every additional day spent in negotiations increases the chance that one party—often the buyer—will grow frustrated and walk away, particularly in a competitive market where there are other, more straightforward properties to purchase.
What Happens to Documentation Post-Transaction?
Once the property sale completes, documentation is often scattered, disorganised, or lost entirely. This is a critical oversight. Post-sale, property records should be carefully archived and accessible for the new owner, whether for future compliance checks, ongoing maintenance, or eventual resale.
However, it’s not uncommon for documentation to go missing once the deal is finalised, either because records are still with the seller’s solicitor, stored on outdated systems, or simply never transferred correctly to the new owner. This leads to a cycle where the next transaction faces the same issues all over again.
Building Passport provides a solution to this by offering a digital library where all property documents are stored in one secure, cloud-based platform. Whether it's fire safety records, maintenance logs, or lease agreements, everything is kept in one place—accessible to both current and future owners, and easily updated when necessary. This prevents the documentation from becoming lost or fragmented post-transaction, ensuring compliance and maintenance records are available throughout the building’s lifecycle.
Proactive Documentation
The best way to avoid these costly risks is to take a proactive approach to documentation management. Sellers who wait until the last minute to gather records often find themselves in a bind, having to pay for repeat surveys or risk losing the deal entirely.
Regularly updating and maintaining complete building records doesn’t just help you avoid costly delays; it also reassures buyers that they are purchasing a fully compliant, well-maintained property. By taking control of your documentation early, you can significantly reduce the risk of setbacks and unexpected costs during the transaction process.
Don’t Let Missing Docs Derail Your Deal
The risks associated with poor documentation in property transactions are far-reaching. From repeat surveys and delayed deals to lost sales and mounting legal fees, the costs are too great to ignore. However, these risks are entirely preventable.
By using tools like Building Passport to centralise and manage your building’s records, you can ensure that nothing is left to chance. Complete, up-to-date documentation not only facilitates a faster, smoother transaction but also safeguards the property’s value for years to come. Don’t let missing documents ruin your next sale—get organised, stay compliant, and protect your investment.
Sources:
RICS: “Fire Risk Assessments: Costs and Compliance”
JLL UK: “Understanding Commercial Property Holding Costs”
The Law Society of England and Wales: “Legal Fees in Commercial Transactions”
UK Government: "Building Safety Act 2022"
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