Essential Provisions in a Commercial Real Estate Purchase Agreement
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Every real estate deal is different, so you should get advice from a lawyer on the essential provisions to include in your commercial realty agreement. An experienced attorney can draft a well-constructed contract designed to protect your specific interests. However, your purchase agreement should address at least the following:
(1) An exact description of the property you are buying, including the land surrounding the building.
(2) The purchase price and whether it is all due at the closing or in installments.
(3) A list of any equipment or personal property to be included in your purchase.
(4) Any contingencies that must be met before you are obligated to complete the purchase. For example, you can make the deal contingent on your ability to get a mortgage loan.
(5) How property taxes and utility bills will be pro-rated (allocated) between the seller and yourself.
(6) The type of title evidence or title insurance the seller must provide.
(7) The date for closing and delivery of possession of the property.
(8) The legal recourse each party has if the other party defaults.