A purchase and sales agreement is an important part of a commercial sales transaction. For that reason, the parties to the transaction should know how to negotiate and draft a purchase and sales agreement and what to include in one.
There are several components of a purchase and sales agreement that should be included to help with a successful transaction. A purchase and sales agreement is a contract for the purchase of something such as property.
The parties to the transaction should ensure they include the basics such as the names, addresses and contact information for the parties. The type of sale, the dates of the initial agreement and if any deposit was paid should also be a part of the purchase and sale contract. In addition, dates when parts of the contract are expected to be completed, the final closing date and the expected transfer of ownership should also all be included.
A detailed description of the property should be included in the purchase and sales agreement. Any deficits or defects with the property known at the time of the agreement should also be included. The purchase and sales agreement may contain language that allows the buyer to inspect the property and hire experts to inspect the property. Other language may be included that protects the buyer if defects are not disclosed or if after the inspection the property does not meet the seller’s expectations.
The purchase and sales agreement should outline the basic financial terms necessary for the sale which may include a mortgage for the purchase of the property. Financing information that may be included in the purchase and sales agreement can include down payment, interest rates, amount financed, escrow funds and other financial figures and time frames to procure the financing. It may also specify that if the funds are not procured, the contract may be terminated.
It is also a good idea for the purchase and sales agreement to specify that the seller is the owner of the property and has the right to sell the property and will transfer the ownership of the property once financing terms have been met. Commercial real estate law can help guide parties through a successful commercial real estate purchase and sale.