The Commercial Real Estate Purchase And Sale Agreement is a crucial legal document used in Canadian commercial property transactions to formalize the terms and conditions of property transfers between businesses or individuals. This agreement is essential when purchasing or selling any type of commercial real estate in Canada, including office buildings, retail spaces, industrial facilities, or mixed-use properties. It must comply with both federal and provincial regulations governing real estate transactions, including requirements for property transfer, registration, environmental compliance, and tax implications. The document typically includes detailed provisions for due diligence, property inspection, title review, financing conditions, and closing procedures, while also addressing specific provincial requirements for property transfer and registration. It serves as the primary contract governing the entire transaction and provides legal protection for both parties throughout the purchase and sale process.
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1. Parties: Identification of the vendor and purchaser, including full legal names and addresses
2. Background: Context of the transaction and brief description of the property being sold
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed legal description of the property and included fixtures/improvements
5. Purchase Price: Statement of purchase price, deposit requirements, and payment terms
6. Closing: Closing date, conditions, and procedures for completing the transaction
7. Due Diligence: Buyer's investigation rights and timeline for property inspection
8. Representations and Warranties: Seller's statements about the property's condition and legal status
9. Title: Requirements for clear title and process for addressing title issues
10. Adjustments: How taxes, utilities, and other expenses will be prorated at closing
11. Risk: Allocation of risk and responsibility for the property before closing
12. Default: Consequences of either party's failure to perform
13. Notices: How and where formal notices must be delivered
14. General Provisions: Standard contract clauses including governing law and entire agreement
15. Execution: Signature blocks and date of agreement
1. Environmental Matters: Specific provisions regarding environmental investigations and liabilities, used when property has potential environmental concerns
2. Tenant Rights: Provisions regarding existing tenants and leases, included when property has current tenants
3. Development Rights: Special provisions regarding development potential or restrictions, used when property has development opportunities
4. Financing Conditions: Specific provisions regarding buyer's financing requirements, included when purchase is contingent on financing
5. Property Management: Provisions for transition of property management, used for properties with ongoing management needs
6. Bulk Sales: Provisions regarding inventory or equipment included in sale, used for properties with significant movable assets
7. Construction Completion: Provisions regarding incomplete construction or renovations, used for properties under development
8. Government Approvals: Special provisions regarding required governmental approvals, used when specific permits or rezoning is needed
1. Schedule A - Legal Description: Detailed legal description of the property
2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, and other title exceptions
3. Schedule C - Purchase Price Allocation: Breakdown of purchase price among land, buildings, and other assets
4. Schedule D - Existing Leases: List and details of current tenant leases
5. Schedule E - Property Contracts: List of service contracts, warranties, and other agreements
6. Schedule F - Environmental Reports: List of environmental studies and findings
7. Schedule G - Property Inventory: Detailed list of included personal property and equipment
8. Appendix 1 - Site Plan: Visual representation of the property boundaries and features
9. Appendix 2 - Due Diligence Documents: List of documents provided for buyer's review
10. Appendix 3 - Form of Deed: Form of transfer/deed to be used at closing
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Commercial Property
Retail
Industrial
Office Space
Hospitality
Healthcare
Manufacturing
Warehouse and Distribution
Professional Services
Financial Services
Technology
Relevant Teams
Legal
Real Estate
Finance
Operations
Risk Management
Facilities Management
Business Development
Asset Management
Investment
Compliance
Property Management
Relevant Roles
Real Estate Attorney
Commercial Property Manager
Real Estate Broker
Chief Financial Officer
Corporate Counsel
Real Estate Development Manager
Facilities Manager
Property Acquisition Manager
Real Estate Investment Manager
Asset Manager
Business Development Director
Risk Management Officer
Commercial Property Appraiser
Real Estate Portfolio Manager
Transaction Manager
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