When it comes to buying commercial real estate, having a purchase agreement in place is crucial to protect both the buyer`s and the seller`s interests. This legal document outlines the terms and conditions of the sale, from the purchase price to the timeline of the transaction.
To ensure that your purchase agreement covers all the necessary components, here is a sample purchase agreement for commercial real estate to guide you through the process.
1. Parties Involved: The purchase agreement should clearly state the names and addresses of the buyer and seller, as well as any other parties involved in the transaction, such as brokers or attorneys.
2. Purchase Price: This clause outlines the purchase price and the payment terms. It should also cover any financing or mortgage details if applicable.
3. Closing Date: The purchase agreement should provide a specific date for closing the sale, as well as the location of the closing.
4. Title and Survey: This section should address the title of the property and any survey requirements. It should also specify who will be responsible for obtaining and paying for the survey.
5. Property Condition: The purchase agreement should outline the condition of the property at the time of the sale. It should also cover any warranties or representations made by the seller.
6. Contingencies: This section should outline any contingencies that must be met before the sale can be finalized. Common contingencies include inspections, financing, and zoning approvals.
7. Risk of Loss: This clause addresses the risk of loss during the period between the contract signing and the closing date. It should specify who bears the risk of losses that occur during this period.
8. Closing Costs: The purchase agreement should specify who will pay for the closing costs, such as attorney fees, title insurance, and recording fees.
9. Default: This section outlines the consequences if either party defaults on the purchase agreement. It should specify any remedies available to the non-defaulting party.
10. Governing Law: The purchase agreement should specify the laws that govern the agreement and where any disputes will be resolved.
In conclusion, a purchase agreement is a critical document when buying commercial real estate. It is important to have a thorough and detailed agreement in place to avoid any confusion or disputes down the line. This sample purchase agreement provides a basic template to get you started, but it is always advisable to have a qualified attorney review and revise the agreement to meet your specific needs.