If you are thinking to sell or buy commercial real estate, there are a few key things you should consider. Before you strike a deal with the other party, do you know what to include or look for in the contract?

Not only must the purchase and sale agreement include all parties involved, the agreement should also include full names, physical addresses and commercial affiliations. Additionally, when everyone signs the contract, they should list their titles after their names. That way, parties are able to better protect themselves against legal action.

2. Include A Disclosure Agreement

Purchase contracts should include a disclosure agreement noting all parties shared debts, legal responsibilities, fines and legal actions. That way, if the buyer learns of liabilities the seller did not disclose before going into the agreement, the seller bears responsibility for making things right.

Disclosure agreements also protect sellers who may unknowingly enter a contract with a buyer with bad partners or credit.

3. Contract Must Include All Items

All items included in the sale belong on the contract. Such items may include, but are not limited to business records, physical assets, the name of the business, cash, patents and licenses. This action prevent sellers from competing against buyers, as agreements should include non-compete clauses.

4. Terms Of Sale

An example of sale terms is the payment date(s) and how parties agree to make the payment(s). This is the section to list agents, financial institutions and brokers involved in the sale. It is important to include a clause stating how and where to adjudicate disagreements.

Takeaways

Just like with any type of sales agreement, it is very important to receive input from a legal or financial professional. This planning step ensures that your assets and intent is properly carried out and safeguarded in the long run. By taking such components and recommendations into consideration, you will be able to build a firm foundation for future agreements.

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