Regardless of whether you are buying, selling or starting up a practice, expect your lawyer to ask - what is the town planning status of the practice premises? Is there an existing town planning permit? How long has the practice been carried on at the premises? How many practitioners (dentists, veterinary surgeons, medicos etc.) can practice at the premises at any one time? Is the current use an “as of right” use? Does the town planning permit restrict the operating hours?

Buying a practice?

- Part of your, or your lawyer’s, due diligence is assessing the status of the town planning permit. Review the permit and ensure the actual use by the practice owner is not in breach of the permitted amount of practitioners (actually on site at the one time) and operating hours. It is also important to distinguish a town planning permit from a building permit.

Selling a practice?

- A practice without a permit will not necessarily frustrate a potential sale. Practice age and evidence of long and continued use is accepted as compliance in many situations and lawyers should be ready to advise their clients to not unnecessarily stress out if there is no valid permit. This is of course subject to any clear and fundamental contraventions of the permit or usage of the premises. Vendors should be willing to warrant that they hold all statutory certifications, licences, registrations, approvals, permits, consents and authorisations necessary for the carrying on of the practice at the practice premises.

Starting up a practice?

- Your lease, heads of agreement, agreement to lease, lease proposal, offer to lease (or whatever leasing agents wish to proffer to you) must be subject to town planning due diligence and the appropriate town planning conditions.

- If you are planning to start up a practice, your permit needs to state:

the usage (medical/dental/veterinary);
the minimum amount of practitioners which you require to practise at any one time – if you need three (3), it must state three (3);
the minimum operating hours and days – do you want to operate on weekends or in the evening? Ensure your permit allows it.

We are often surprised to see what actually issues from council town planning departments!

- Remember – do not execute any document with a leasing agent or landlord which does not address the important issue of town planning permits or other permitted use.

The due diligence process surrounding permits is sometimes misunderstood and often seen as an irritation by the vendor’s or landlord’s advisers. Delays can occur in satisfying reasonable town planning queries without proper management and co-operation from all parties. Our Whitehead Legal Due Diligence Compliance Checks should not only discover any issues, but also assist and manage solutions to any issues.

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