There are always risks involved in purchasing commercial real estate in Arizona. However, having a carefully drafted sales contract in place helps protect all parties involved in the transaction. The sales contract outlines everyone’s rights, obligations and liabilities. It also includes a summary of the property transitioning from one party to the next.
Per Property Metrics, having a thorough, complete commercial sales agreement in place may help prevent most disputes or give you something to reference if disputes do arise. What are some of the provisions your commercial sales agreement should have?
A thorough description of the property
Your contract might address three specific types of property: real property, personal property and other property depending on the type of real estate you are looking to buy. Be as thorough and clear as possible in this section. For example, if the seller plans to keep some of the personal property found at the address, the contract should list out exactly what personal property he or she plans to keep.
Pricing information
Your contract should also include information about the purchase price of the property. More specifically, it might address how much of the purchase price covers the land, the personal property undergoing transfer and so on.
Contingencies
In real estate, a contingency is essentially an “if/then” offer. It states that if certain terms come to fruition, you plan to move forward with buying the property.
While these are some of the key elements that often appear in a commercial sales agreement, this is not an exhaustive list of all provisions you may want to see in yours.