Commercial property in Arizona is generally used for business purposes and growing profits. Some examples of commercial property include:
- Office buildings
- Warehouses
- Retail stores
- Hotels
- Multi-family rentals
- Healthcare offices
The purchase of a commercial property is often more complicated than the purchase of a residential property. Before the purchase of a commercial property can be made official, the buyers and sellers will have to enter into a commercial real estate purchase agreement, which lays out the terms of the purchase. While agreements will need to be tailored to fit the circumstances, most agreements contain the following:
- Names and addresses of both parties
- Description of the property
- Designated purchase price and amount due at closing
- Description of how buyer will pay (e.g., bank financing)
- Responsibilities of the parties
- Required inspections and other conditions
- Effective date
Mistakes to avoid when drafting your agreement
When drafting a complex commercial real estate agreement, it is easy to make mistakes. Common mistakes include:
- Failing to use proper names for the parties
- Failing to provide enough details when describing property
- Failing to modify the template of the agreement for the specific needs of the parties
- Negotiating a term, but failing to include it in the agreement
While some of these mistakes may seem minor, any of them could prevent a key aspect of the agreement from being enforceable. Hiring a knowledgeable attorney who has experience with commercial real estate law to draft your agreement and negotiate with the other parties involved will help prevent critical mistakes. Your attorney will also represent your best interests throughout the process and make sure that the final agreement is best suited to your needs.