Purchase agreements are an important part of commercial real estate transactions. They put in writing all agreements between yourself and a commercial property owner, developer or buyer.
The last thing you want to hear during any real estate transaction is that you or the other person talked about something but that it wasn’t included in the purchase agreement. Any agreements you had verbally may not hold up, and you could end up facing losses.
It’s important to cover all your bases when you’re going through a commercial real estate transaction. Here’s how you can do so and be sure your purchase agreement is set up correctly.
Do your research before you sign any real estate contract
Before you complete any kind of real estate transaction, you need to do your research on your purchase agreements. Normally, this agreement is reviewed or created by a real estate attorney who has experience in real estate transactions.
Understand that your purchase agreement will be legally binding if it is drawn up correctly.
Be thorough with your contract
Another thing to do is to be thorough when you’re having the purchase agreement drawn up or reviewed. Did you mention that you wanted a specific amenity included in the contract but you don’t see it here? Have it added before you continue forward with the purchase. Did you offer something additional with the purchase of a property you have for sale? Put that down in writing.
While you may want to keep your contract simple and easy to understand, you also want to be sure that it is as thorough as possible. It should go over:
- The rights and responsibilities both parties have
- The liabilities and obligations of the parties
- The steps needed to conclude the transaction
- How to handle disputes or issues that arise
Commercial contracts are extremely important, and having a contract that protects you is essential. Before you agree to sign any contract, it should be reviewed, and you should know what you’re getting out of the transaction. If something isn’t right, then make sure you negotiate that contract before you sign it.