Engaging in a commercial real estate transaction can be a complex process, requiring careful attention to detail and full comprehension of the legal requirements. For those of you in Florida planning to buy or sell a commercial property, the sales agreement is a fundamental document you must handle with utmost care.
There are certain components that should be in your Florida commercial real estate sales agreement to ensure a smooth transaction and protect the interests of all parties involved.
Key information about the property
Your sales agreement should comprehensively describe the property. This description includes the exact address, the type of property, its current use and the dimensions. Furthermore, if the property has any leases, liens or encumbrances, you should disclose these in the agreement. Complete transparency about the property ensures all parties understand the conditions of the sale.
Terms of the sale
The terms of the sale outline the conditions under which you are selling or buying the property. This section includes the total price, the method of payment and the date of possession. You should also state any contingencies, such as financing or a property inspection, that might affect the sale.
Representations and warranties
The sales agreement should include a section for representations and warranties from the seller. These are statements about the property’s condition, compliance with laws and any pending legal actions. If a buyer discovers any misrepresentation or breach of warranty after the transaction, the buyer can seek legal remedies.
Closing and possession details
The agreement should provide a clear timeline for the closing process. It should specify key dates such as when the seller will deliver the title, when the buyer will pay the balance and when the buyer will take possession.
Understanding the basic elements of a sales agreement is important. But each Florida real estate transaction is unique and may need additional sections in the agreement. Be well-informed and be sure to include items specific to your agreement.