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Commercial Purchase and Sales Agreements Lawyers in Orlando, Florida
If you are buying or selling commercial real estate, your commercial purchase and sales agreement will be the foundational legal document that governs your sale. Having a sound commercial purchase and sales agreement in place can protect both parties’ rights. So, whether you are selling commercial real estate or purchasing commercial real estate, it can be helpful to have a commercial purchase and sales agreement lawyer in Orlando, Florida review your contract or help you draft a sales agreement contract that can outline each party’s responsibilities and rights.
What Should be Included in a Commercial Purchase and Sales Agreement in Orlando, Florida?
While it might be tempting to use a template commercial purchase and sales agreement contract from the internet, it is important to understand that a template contract won’t always include considerations related to specific local laws, and may not include provisions that you may want to include in your unique situation. Every property is different and every sale will be different. Rather than relying on a template to govern your sale, you may want to speak to the commercial purchase and sales agreement lawyer in Orlando, Florida at Legal Counsel, PA. However, what will be included in most commercial purchase and sales agreement contracts?
According to the American Bar Association, with a commercial real estate purchase or sale, the first step is often a letter of intent. In this case, one or both parties writes a letter of intent to either sell or purchase the property. The letter may include a description of the property, an offer or sale price, and details about how the purchaser will provide financing and funding. The letter of intent may include information about how long the offer of purchase will be valid (how long the seller has to accept the offer), and other critical information. Legal Counsel, PA is a commercial purchase and sales agreement lawyer in Orlando, Florida who can help you draft a letter of intent that is clear and that protects your rights.
In some cases, a commercial real estate transaction is made with several letters going back and forth between both parties, in which one party makes the offer, the offer is accepted formally, and the parties move to close. In other instances, one party may draw up a formal sales contract which may include information about the title and provisions that give the buyer time to perform inspections and time to get financing. In commercial real estate transactions where a company is buying or selling property, the person making the deal must have authority to do so.
Whether both buying and selling parties use a contract or letters of intent, there are some specific provisions that should be included. What information should be included? Here are some details:
- Names of both the buying and selling parties and companies, as well as names of the agents acting on behalf of companies.
- Description of the property and any other inclusions in the sale. With commercial property this may sometimes include business equipment or furniture.
- Description of the deed.
- Purchase price.
- Time frame for the buyer to obtain financing. Specifics may include making the offer contingent upon the buyer getting a loan at a reasonable interest rate.
- Closing date. Time is of the essence for both parties, so a contract should include a proper timeline for when the closing should take place, when inspections should take place, and when financing should be secured.
- A contract may also include disclosures of the seller to the buyer, including information about liens on the property, representations that the property is in accordance with local building codes, and that the seller has full right to the title and right to sell. Furthermore, representations may include disclosures about environmental hazards or other risks, although, sometimes the seller might sell the property “as is” and give the buyer the right to inspect the property.
- Title Search. The buyer may need to perform a title search or purchase title insurance before the sale closes and a provision should be included in the contract for remedies should there be an issue discovered with the title.
- Specifics about how the contract should be terminated. In general, provisions require that contracts be cancelled in writing and within a specific timeframe.
- Ability of each party to perform their duties. Both parties must be specified in the contract, but both parties must also be of sound mind and able to enter into a contract. Issues where a business owner doesn’t have full authority to enter into a contract can arise. For example, if a business owner is married, he or she may need approval of a spouse before the contract can be valid.
These are just some of the provisions that may be included in a sale of commercial property. Depending on your situation and needs, other provisions may need to be included. Legal Counsel, PA is a commercial purchase and sales agreement lawyer in Orlando, Florida who may be able to help you with your commercial sale or purchase.
Get Help With Your Commercial Purchase and Sales Agreements
When both parties in a commercial real estate sale understand their responsibilities and rights, the risk of misunderstanding is reduced. Furthermore, if both parties do have a misunderstanding, when there is a contract in place, both parties can turn to the contract to guide them on what should happen next. If you are purchasing commercial property, or selling commercial property, protect your rights. Legal Counsel, PA is a commercial purchase and sales agreement lawyer who can review your contract and help you understand your rights if you are buying commercial real estate. Understand your contract before you sign it with the help of Legal Counsel, PA. Our firm can add provisions to a contract before you sign it to also protect your interests. If you are selling commercial real estate, having a sound contract can help your sale go smoothly. Contact Legal Counsel, PA, a commercial purchase and sales agreement lawyer today.