The Commercial Real Estate Contract Form serves as the foundational document for commercial property transactions in the United States. It is designed to facilitate complex real estate deals while ensuring compliance with federal, state, and local regulations. This contract type is essential when purchasing or selling any commercial property, from office buildings to retail spaces. It includes crucial elements such as property specifications, financial terms, due diligence requirements, and closing conditions, while addressing potential contingencies and risk allocation between parties.
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1. Parties: Legal identification of buyer and seller, including business entities and authorized signatories
2. Background: Context of the transaction and brief property description
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property and included fixtures/improvements
5. Purchase Price: Terms of payment, including deposit and financing conditions
6. Due Diligence: Inspection period, requirements, and contingencies
7. Closing: Closing date, requirements, and deliverables
8. Representations and Warranties: Statements of fact by both parties regarding the property and transaction
1. Broker Provisions: Terms regarding real estate brokers and commissions - include when brokers are involved in the transaction
2. Environmental Matters: Environmental conditions and requirements - include for properties with potential environmental concerns
3. Tenant Rights: Existing lease agreements and tenant obligations - include when property has existing tenants
4. Development Rights: Rights and restrictions regarding property development - include for undeveloped or partially developed properties
1. Property Survey: Detailed survey showing property boundaries and improvements
2. Title Documents: Title report and related documentation
3. Environmental Reports: Environmental assessments and related documentation
4. Existing Leases: Copies of current lease agreements
5. Property Plans: Architectural plans and building specifications
6. Due Diligence Documents: Property inspection reports, certificates, and permits
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