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Commercial Property Purchase Agreement for the United States

Commercial Property Purchase Agreement Template for United States

A Commercial Property Purchase Agreement is a legally binding contract used in the United States for the sale and purchase of commercial real estate. It outlines the terms and conditions of the transaction, including purchase price, due diligence requirements, closing conditions, and representations and warranties of both parties. The agreement incorporates both federal and state-specific requirements, ensuring compliance with local real estate laws and regulations.

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Commercial Property Purchase Agreement

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What is a Commercial Property Purchase Agreement?

The Commercial Property Purchase Agreement serves as the primary document in commercial real estate transactions within the United States. It is essential when any business or individual is purchasing commercial property, whether for investment, business operations, or development purposes. The agreement covers crucial elements including property description, purchase price, closing requirements, due diligence periods, and contingencies. It must comply with both federal regulations and state-specific real estate laws, making it a comprehensive document that protects both buyers' and sellers' interests throughout the transaction process.

What sections should be included in a Commercial Property Purchase Agreement?

1. Parties: Identification of buyer and seller, including legal entity details

2. Background/Recitals: Context of the transaction and property description

3. Definitions: Key terms used throughout the agreement

4. Purchase Price: Amount, payment terms, and deposit requirements

5. Property Description: Detailed description of the property and included/excluded items

6. Due Diligence: Inspection period, documentation requirements, and access rights

7. Closing Conditions: Requirements to be met before closing

8. Representations and Warranties: Statements of fact by both parties

9. Default and Remedies: Consequences of breach by either party

10. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a Commercial Property Purchase Agreement?

1. Financing Contingency: Terms related to buyer's financing requirements when buyer requires financing to complete purchase

2. Environmental Matters: Environmental compliance and remediation requirements for properties with potential environmental concerns

3. Tenant Rights: Existing lease agreements and tenant obligations for properties with existing tenants

4. Development Rights: Rights to develop or modify the property for properties with development potential

What schedules should be included in a Commercial Property Purchase Agreement?

1. Property Description Schedule: Detailed legal description of the property

2. Title Exceptions Schedule: List of permitted encumbrances and title exceptions

3. Due Diligence Documents: List of required documentation for review

4. Environmental Reports: Any environmental assessments or reports

5. Lease Schedule: Details of existing leases and tenancies

6. Service Contracts: List of existing service agreements

7. Property Condition Report: Current condition assessment of the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Purchase Agreement

Cost

Free to use
Clauses


































Industries

Americans with Disabilities Act (ADA): Federal law requiring commercial properties to meet accessibility standards and compliance requirements for individuals with disabilities

Fair Housing Act: Federal anti-discrimination provisions ensuring equal access to property transactions regardless of race, color, religion, sex, familial status, or national origin

EPA Regulations: Federal environmental regulations including CERCLA (Superfund), Clean Air Act, and Clean Water Act that govern environmental compliance and liability

FIRPTA: Foreign Investment in Real Property Tax Act governing tax implications for foreign persons selling U.S. real property interests

State Property Laws: State-specific regulations governing real property transactions, ownership, and transfer requirements

State Licensing Requirements: Regulations governing real estate professional licensing and conduct in property transactions

State Environmental Regulations: State-specific environmental protection requirements and compliance standards

State Disclosure Requirements: Mandatory property condition and material fact disclosures required by state law

State Recording and Transfer Tax Laws: Requirements for recording property transfers and associated tax obligations

Municipal Zoning Ordinances: Local regulations governing property use, development, and restrictions

Building Codes: Local construction and safety standards that properties must meet

Property Tax Assessments: Local tax obligations and assessment procedures for commercial properties

Uniform Commercial Code: Standardized rules governing commercial transactions, including provisions affecting property sales

Title Requirements: Legal standards for property ownership verification, recording, and transfer procedures

Statute of Frauds: Legal requirement that real estate contracts must be in writing to be enforceable

Due Diligence Requirements: Standard investigation and verification procedures required in commercial property transactions

Escrow Requirements: Rules governing the handling of funds and documents through third-party escrow agents

Survey Requirements: Standards for property boundary surveys and legal description verification

Insurance Requirements: Mandatory and recommended insurance coverage for commercial property transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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