A Building Purchase Agreement serves as the primary document governing the sale and purchase of building properties in the United States. This agreement is essential when transferring ownership of commercial, industrial, or residential buildings, ensuring all terms, conditions, and legal requirements are properly documented. The document includes crucial elements such as property details, purchase price, closing requirements, warranties, and contingencies. It must comply with federal regulations such as FIRPTA and state-specific real estate laws. The agreement is typically used after initial negotiations are complete and continues through the closing process.
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1. Parties: Identifies and defines all parties involved in the purchase agreement, including legal names and addresses
2. Background/Recitals: Sets forth the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Property Description: Detailed legal description of the building and land being purchased
5. Purchase Price: States the agreed purchase price and payment terms
6. Closing: Details of closing date, location, and requirements
7. Representations and Warranties: Statements of fact and promises made by both parties
8. Due Diligence: Requirements and timeline for property inspection and review
9. Title and Survey: Requirements for clear title and property survey
10. Default and Remedies: Consequences of breach and available remedies
1. Financing Contingency: Terms related to buyer's ability to obtain financing - include when buyer requires financing to complete purchase
2. Environmental Matters: Environmental inspection requirements and remediation - include for commercial properties or properties with potential environmental concerns
3. Tenant Rights: Existing tenant arrangements and obligations - include when property has existing tenants
4. Property Management: Transition of property management responsibilities - include for commercial properties with existing management
1. Property Description Schedule: Detailed legal description and property boundaries
2. Title Exceptions Schedule: List of permitted exceptions to title
3. Environmental Reports: Results of environmental assessments
4. Building Inspection Reports: Results of building inspections
5. Tenant Schedule: List of current tenants and lease terms
6. Property Tax Assessment: Current property tax assessment details
7. Service Contracts: List of existing service contracts
8. Permits and Licenses: Copies of current permits and licenses
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