A commercial real estate purchase agreement outlines the sale of commercial property from one party to another in exchange for an agreed-upon sum. The document contains details of the property being sold, the obligations of both parties, and what must occur in order to close the deal. Commercial property is often defined as any real estate intended for the generation of profit in some form. This includes, but is not limited to, the following types of properties:
- Retail stores & malls
- Office buildings
- Multi-family buildings
- Industrial buildings/warehouses
- Agricultural land
What is a Commercial Purchase Agreement?
A commercial purchase agreement is a legal document that is written once the seller and buyer have agreed on a purchase price and wish to move forward with the transaction. The first draft of the contract will often be written by the seller of the property (or their attorney), who will then send the document to the buyer or the buyer’s attorney. If the buyer finds anything they wish to alter in the contract, they will send back any requested changes. This back-and-forth process will continue until both parties agree on the provisions included in the form
Overview of the Selling Process
While the exact process will differ depending on whether or not a broker was used and the terms negotiated, the following steps create the general outline of the process one undertakes when selling property:
- The decision to sell the property is made.
- The owner gets into contact with a broker (optional, but recommended).
- A listing agreement is completed and signed (if using a broker).
- The property is listed on selling platforms (handled by the broker, if using one).
- Negotiation begins upon finding a potential buyer.
- A purchase agreement is completed and signed.
- The buyer is given time to conduct due diligence.
- The parties close on the deal, money is exchanged and commissions are paid.
- The new owner records the deed.