As a general matter, contracts for the sale of real property are governed under common law rules. One very old common law rule that is still in place today in every state is called the Statute of Frauds. Under the Statute of Frauds, certain contracts have to be in writing in order to be considered legally valid. Contracts for the purchase or sale of any type of real property, including commercial real estate, are one such example of a requirement that a contract be in writing.
Understanding Contract Requirements and the Statute of Frauds
The transfer of real property is one of the more complex financial transactions that occur. There are a myriad of different things that go on when commercial real estate is purchased. Often, one party has to get a mortgage and the other has to pay one off. There is usually a process of a title search to ensure there are no outstanding liens and there is usually title insurance purchased. There may be money and documents placed into escrow with an escrow agency. All of these things can make the process of buying or selling commercial real estate seem daunting.
In fact, however, the actual contract itself doesn't have to be fancy or detailed. As long as the written contract for the purchase of the commercial real estate contains the basics (the sale price, etc.) that will usually be sufficient to make the contract legally enforceable. Of course, the contract can also become as complex and detailed as you'd like it to be, and it is usually in your best interests to try to include multiple provisions in the contract that protect your legal rights.
Getting Help Putting a Contract in Writing
The best way to make sure that your contract for the purchase or sale of land is valid is to talk to an attorney. Your lawyer can review the contract and make sure not only that it will be considered legally proper in your state, but also that it protects your interests to the fullest extent possible.