When you buy a residential property in Florida, you may need to rely on certain contingencies to make sure you get financing, sell your own home first or what have you. The same holds true when you buy commercial real estate in Florida, and there are certain contingencies you may need to use along the way.
Per Property Metrics, contingencies essentially give you a way to back out of a commercial real estate deal if certain conditions never come to be. Some common commercial real estate contingencies are as follows.
Financing contingency
You may decide to move forward with buying a commercial property as long as you get funding for it. If you are unable to find a loan or are unable to find a loan that has satisfactory terms, a financing contingency gives you a way to back out.
Inspection contingency
An inspection contingency in commercial real estate is like an inspection contingency in residential real estate in that both give you a chance to change your mind about the sale if an inspection turns up a major issue or defect. Even if you do not decide to abandon a real estate deal after an inspection, you may be able to negotiate new sales terms that take the defect or issue into account.
While these are two common contingencies used in commercial real estate transactions, please note that this is not a comprehensive list of all types of contingencies you may need to use when buying commercial property. All commercial real estate transactions involve some degree of risk. However, contingencies help you protect your investment by mitigating the risks involved.
