The Commercial Real Estate Purchase Offer is a crucial document in Canadian real estate transactions, representing the initial step in acquiring commercial property. It is used when a prospective buyer wishes to formalize their intent to purchase commercial real estate and establish the fundamental terms of the transaction. This document must comply with federal and provincial regulations governing commercial property transactions in Canada, including requirements under the Real Estate and Business Brokers Act, Land Titles Act, and relevant provincial commercial law statutes. The offer typically includes comprehensive details about the property, purchase price, conditions, due diligence requirements, and closing terms. It serves as the foundation for negotiations and, once accepted, becomes a binding agreement that will guide the transaction through to completion.
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1. Parties: Identification of the purchaser and vendor, including full legal names and addresses
2. Background: Context of the transaction and brief description of the property being purchased
3. Definitions: Key terms used throughout the document
4. Property Description: Detailed legal description of the property and included fixtures/improvements
5. Purchase Price: Specified purchase amount and payment terms
6. Deposit: Amount, payment terms, and handling of the deposit
7. Due Diligence Period: Timeframe and conditions for property investigation and document review
8. Conditions Precedent: Conditions that must be satisfied before closing
9. Representations and Warranties: Statements of fact by both parties about the property and their capacity to complete the transaction
10. Closing Date and Possession: Specified date for completion of the transaction and transfer of possession
11. Adjustments: How property taxes, utilities, and other expenses will be prorated
12. Default and Remedies: Consequences of breach by either party
13. Notices: How formal communications between parties should be delivered
14. Governing Law: Specification of Canadian law and applicable province
15. Execution: Signature blocks and date of offer
1. Financing Condition: Include when purchaser requires financing to complete the transaction
2. Environmental Conditions: Include when environmental investigations or warranties are required
3. Tenant Rights: Include when property has existing tenants with ongoing lease agreements
4. Property Management: Include when transition of property management services is relevant
5. Development Conditions: Include when purchaser plans to develop or significantly modify the property
6. Assignment Rights: Include when either party may need to assign their rights under the agreement
7. Foreign Investment: Include when purchaser is a non-Canadian entity
8. Vendor Take-Back Mortgage: Include when vendor is providing partial financing
9. Service Contracts: Include when dealing with ongoing service agreements that need to be addressed
1. Schedule A - Legal Description: Detailed legal description of the property
2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, and encumbrances
3. Schedule C - Included Chattels: Inventory of personal property included in the sale
4. Schedule D - Existing Leases: Details of current lease agreements affecting the property
5. Schedule E - Service Contracts: List of ongoing service contracts affecting the property
6. Schedule F - Environmental Reports: Summary or copies of environmental assessments
7. Schedule G - Property Condition Report: Current condition assessment of the property
8. Appendix 1 - Due Diligence Documents: List of required documents for review
9. Appendix 2 - Property Plans: Site plans, floor plans, and surveys
10. Appendix 3 - Title Documents: Copies of title documents and registered instruments
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