When Buying Commercial Property

It is important to have a purchase agreement in place that outlines the terms and conditions of the purchase transaction. The purchase agreement should include the following elements:

1. Description of Property: The purchase agreement should clearly describe the property being purchased, including its address, legal description, and any other relevant details.
2. Purchase Price: The agreement should specify the purchase price of the property, including any deposit or earnest money that is being paid.
3. Payment Terms: The agreement should outline the payment terms, including the schedule of payments and any escrow arrangements that may be required.
4. Due Diligence: The agreement should include a due diligence period for the buyer to review the property and any related documents or information. This should include a list of documents that must be provided by the seller, such as surveys, appraisals, or environmental reports.
5. Contingencies: The agreement should include any contingencies that must be met for the sale to proceed, such as the buyer obtaining financing, or the property passing a property inspection.
6. Closing Date: The agreement should specify the closing date for the transaction, as well as any provisions for extensions or delays.
7. Closing Costs: The agreement should specify who is responsible for paying closing costs, including any transfer taxes, title fees, or other expenses.
8. Representations and Warranties: The agreement should include representations and warranties from the seller regarding the condition of the property, any liens or encumbrances, and the seller's authority to sell the property.
9. Dispute Resolution: The agreement should include provisions for resolving any disputes that may arise, including alternative dispute resolution mechanisms such as mediation or arbitration.

It is important to work with a licensed attorney to review and prepare a purchase agreement to ensure that all necessary provisions are included and to protect your interests.