Purchase Agreement For Commercial Property for the United States

Purchase Agreement For Commercial Property Template for United States

A Purchase Agreement for Commercial Property is a legally binding contract used in the United States that documents the terms and conditions of a commercial real estate transaction. It covers crucial elements including property description, purchase price, due diligence requirements, representations and warranties, closing conditions, and remedies for default. The agreement must comply with federal, state, and local real estate laws and regulations.

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What is a Purchase Agreement For Commercial Property?

The Purchase Agreement for Commercial Property is essential for any commercial real estate transaction in the United States. This document is used when businesses or individuals seek to buy or sell commercial properties such as office buildings, retail spaces, industrial facilities, or multi-unit properties. It outlines all material terms of the transaction, including property details, price, financing arrangements, due diligence requirements, and closing conditions. The agreement must conform to both federal and state-specific real estate laws, and typically involves substantial due diligence and negotiation between parties.

What sections should be included in a Purchase Agreement For Commercial Property?

1. Parties: Identification of buyer and seller with full legal names and addresses

2. Background/Recitals: Context of the transaction and basic property information

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed legal description of the property and included fixtures/equipment

5. Purchase Price: Amount, payment terms, deposits, and adjustments

6. Due Diligence: Inspection period, access rights, and documentation requirements

7. Closing: Timing, location, and required deliverables

8. Representations and Warranties: Statements of fact by both parties about the property and transaction

9. Default and Remedies: Consequences of breach and available remedies

What sections are optional to include in a Purchase Agreement For Commercial Property?

1. Financing Contingency: Terms related to buyer's ability to secure financing

2. Environmental Matters: Environmental investigations and remediation requirements

3. Tenant Rights: Existing lease agreements and tenant obligations

4. 1031 Exchange: Terms facilitating tax-deferred exchange

What schedules should be included in a Purchase Agreement For Commercial Property?

1. Property Description Schedule: Detailed legal description and property boundaries

2. Personal Property Schedule: List of included furniture, fixtures, and equipment

3. Due Diligence Documents: List of required property documents and reports

4. Existing Leases: Copies of current lease agreements

5. Environmental Reports: Phase I/II environmental assessments and related documents

6. Title Documents: Title commitment and related documentation

7. Survey: Property survey and related certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Americans with Disabilities Act (ADA): Federal law requiring commercial properties to meet specific accessibility standards and accommodations for persons with disabilities

Fair Housing Act: Federal law prohibiting discrimination in real estate transactions, particularly relevant for mixed-use commercial properties

CERCLA: Comprehensive Environmental Response, Compensation, and Liability Act - Federal law governing environmental contamination and cleanup responsibilities

Clean Air Act: Federal environmental law regulating air emissions and air quality standards that may affect commercial property operations

Clean Water Act: Federal environmental law governing water pollution and water quality standards that may impact commercial properties

FIRPTA: Foreign Investment in Real Property Tax Act - Federal law requiring tax withholding on property sales by foreign persons

State Property Laws: State-specific regulations governing real property ownership, transfer, and rights

State Real Estate Transfer Laws: State-specific requirements for transferring property ownership, including deed requirements and transfer taxes

State Environmental Regulations: State-level environmental protection requirements that may be more stringent than federal regulations

State Zoning Laws: State-specific regulations governing property use, development, and restrictions

State Recording Requirements: State-specific rules for recording property documents and maintaining public records

State Disclosure Requirements: State-mandated disclosures about property condition, hazards, and other material facts

Local Zoning Ordinances: Municipal or county-level regulations controlling property use, development, and restrictions

Building Codes: Local and state construction and safety standards that commercial properties must meet

Property Tax Regulations: Local and state rules governing property tax assessment, payment, and appeals

Title Insurance Requirements: State and lender requirements for title insurance coverage and property ownership verification

Real Estate Licensing Laws: State regulations governing real estate professional licensing and transaction requirements

Commercial Lending Regulations: Federal and state laws governing commercial real estate financing and lending practices

Uniform Commercial Code (UCC): State-adopted standardized laws governing commercial transactions, particularly relevant if personal property is included in the sale

Statute of Frauds: State law requiring real estate contracts to be in writing and meet specific formalities

Local Use Permits: Municipal requirements for business operations, occupancy, and specific commercial uses

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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