Standard Commercial Real Estate Purchase Agreement

When it comes to purchasing commercial real estate, having a standard purchase agreement in place is essential to ensure a smooth transaction. The agreement outlines the terms and conditions of the sale and protects both the buyer and seller.

Here are some key elements that should be included in a standard commercial real estate purchase agreement:

1. Description of the Property: The agreement should include a detailed description of the property being purchased, including its legal address, size, and zoning information.

2. Purchase Price and Payment Terms: The agreement should clearly state the purchase price, any deposit amounts required, and the payment schedule. It should also specify how any adjustments to the purchase price will be made, such as for taxes and other expenses.

3. Due Diligence Period: A due diligence period gives the buyer time to inspect the property and conduct any necessary research before finalizing the sale. The agreement should specify the length of the due diligence period and any conditions that must be met before the sale can be completed.

4. Contingencies: Contingencies are conditions that must be met before the sale can be completed. Common contingencies include obtaining financing, securing necessary permits, and completing inspections.

5. Closing Date: The agreement should specify the date on which the sale will be completed, including the time and location of the closing.

6. Representations and Warranties: Representations and warranties are promises made by the seller regarding the property. These may include assurances that the property is in good condition, that there are no environmental issues, and that the seller has the legal right to sell the property.

7. Default: The agreement should specify what will happen if either party fails to meet their obligations under the agreement. This may include the right to terminate the agreement, seek damages, or take other legal action.

Having a standard commercial real estate purchase agreement in place can help streamline the buying process and protect both parties involved. As such, it is highly recommended to work with an experienced real estate attorney to ensure that all necessary elements are included and that both you and the seller are properly protected.