Dealing with a commercial real estate transaction may seem daunting and neverending. Negotiating the terms and conditions may become tedious, especially if you are in a rush to get going on closing the deal.
When looking at a purchase and sale agreement, a commercial real estate lawyer austin tx is going to understand the importance of the document as a whole. It may help you to break it down into more manageable chunks of information. Explore these three sections to get a feel for a few of the required provisions, so you know what to expect.
1. The Premises or Property Description
Ensuring the parties are talking about the correct property may seem like a no-brainer. However, the only way to be sure is by including an accurate description of what is being purchased. If it is a building, a map and description of the built-out space is the best way to go. A physical address, if there is one, also should be included. If the subject property is vacant land, there should be a survey performed out of which a property description is completed.
2. The Inspection Period
Before someone buys real estate, they have the right to make sure they get what they want. The inspection or due diligence period is for this purpose. During this time, the buyer has access to conduct testing, measurements and a full inspection of the area being purchased. If anything comes up as faulty during this time, the seller may choose to fix it and move on with the sale. Sometimes, the seller opts not to fix an issue, whereby the buyer may cancel the contract.
3. The Signatories
The proper people have to sign the contract to make it valid and enforceable. Therefore, the signatories must be authorized on behalf of the buyer and seller by corporate documents or the like. If not, then the entire agreement may be tossed out should it come under scrutiny in court.
Purchasing a new place for your business is exciting. Make it less stressful by understanding how the process works.