Do you know the most important part of a commercial real estate transaction? It is the “contract of purchase and sale,” which many attest is the road map of the real estate transaction. If a contract is properly negotiated and focused on eliminating any ambiguities, most problems will be avoided and the parties can move towards closing.
A contract can be:
Generally, a contract of purchase and sale involves the following elements: letters of intent, bilateral contract requirements, the offer, acceptance, and consideration (without a consideration passing between the parties, it is not binding), such as a promise for a promise, etc.
In a commercial real estate transaction, the property should be well-described in the contract itself, and the contract should contain a legal description of the property. When entering a commercial real estate contract, one should ask:
Often, the seller will put a provision in the contract that the property is being sold “as is.” This means the seller is not stating that the property is any particular condition. However, selling a property “as is” will not protect a seller against fraudulent concealment of fact, or fraudulent misrepresentations.
In order for buyers to protect themselves, they should allow 10 days from signing (or longer) to inspect the property, or to have engineer inspect it for them. Usually, it is the engineer’s job to check the structural soundness of the property and any improvements that were made.
When it comes to a commercial real estate transaction, it is important to cover all of your bases, and it all starts with a well-executed contract of purchase and sale. If you are looking for a Chicago real estate lawyer to assist you in this endeavor, contact Rifkind Patrick LLC today. With over 40 years of collective experience, we are qualified to represent you.
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