What provisions should be in a commercial real estate purchase agreement?

Legal Article

What provisions should be in a commercial real estate purchase agreement?

There are several provisions that you should consider including in a commercial real estate purchase agreement. Here are a few examples:

  1. Parties: The names and contact information of the buyer and seller should be included in the purchase agreement.
  2. Property: The address and a detailed description of the property should be included.
  3. Purchase price: The agreement should specify the purchase price and the terms of payment, including any deposits or contingencies.
  4. Closing date: The agreement should specify the date on which the sale is expected to close.
  5. Financing: If the buyer is obtaining financing to purchase the property, the agreement should specify the terms of the financing, including the lender and the interest rate.
  6. Title: The agreement should specify who is responsible for transferring title to the property and obtaining title insurance.
  7. Condition of the property: The agreement should specify the condition of the property at the time of sale, including any repairs or improvements that are necessary.
  8. Representations and warranties: The seller should make representations and warranties about the condition and ownership of the property.
  9. Indemnification: The agreement should specify which party is responsible for any claims or damages that may arise in relation to the property.
  10. Termination: The agreement should specify the circumstances under which either party can terminate the agreement.