Regardless if you're a veteran at commercial purchasing, or a rookie that has just stepped into the game, the future isn't always predictable. Obstacles will arise, yet many - to a large extent - can be avoided. To minimize the stress level, having a concrete and unambiguous purchase contract is crucial. Clearly, the document should be comprehensive. Though one should consult his/her attorney regarding the terms' legality and suitability, there are some ground provisions to include:
- Parties to the CRE transaction (buyer/seller)
- The history of the transaction; the purpose of the real estate venture
- Property description - price, condition, etc.
- Payment terms/ closing date and conditional closing
- Title abstract and insurance
- Rights to adjust purchase contract
- Duration/ termination provision
- Assignment/delegation rights
- Escrow
- Warranties
- Zoning and land use issues
- Inspection rights
- 1031 tax deferral/exchange
- Liability insurance
- Contract breach remedies
- Possible dispute settlement options (arbitration)
- Governing laws
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