You want to either sell or buy commercial real estate in the Metroplex. Before you strike a deal with the other party, do you know what to include or look for in the contract? It’s important to understand the essentials of protecting yourself and your investment with a thorough document.
All parties
Not only must the purchase and sale agreement include all parties involved in the agreement, but also full names, physical addresses and commercial affiliations. When everyone signs the contract, they should list their titles after their names. That way, parties better safeguard themselves against legal action.
Disclosure agreement
Purchase contracts should include a disclosure agreement noting all parties shared all debts, legal responsibilities, fines and legal actions. That way, if the buyer learns of liabilities the seller did not disclose before going into the agreement, the seller bears responsibility for making things right. Disclosure agreements also protect sellers who may unknowingly enter a contract with a buyer with bad partners or credit.
Included items
All items included in the sale belong on the contract. That means business records, physical assets, the name of the business, cash, patents and licenses. To prevent sellers from competing against buyers, agreements should include non-compete clauses.
Sale terms
An example of sale terms is the payment date(s) and how parties agree to make the payment(s). This is the section to list agents, financial institutions and brokers involved in the sale. Include a clause stating how and where to adjudicate disagreements.
Hopefully, your commercial real estate purchase or sale proves a success. Better your chances with an airtight agreement that protects you at every legal angle.