Commercial Property Purchase Agreement Template

COMMERCIAL PROPERTY PURCHASE AGREEMENT TEMPLATE FAQ

What is a commercial property purchase agreement?

A Commercial Property Purchase Agreement is a contract between a buyer and seller for the sale of commercial real estate (such as an office building, retail space, industrial property, or multi-unit commercial asset). It sets the purchase price, deposit, due diligence period, contingencies, and closing process.

What should be included in a commercial purchase agreement?

Common terms include: property description and included assets, purchase price and earnest money, financing contingency (if any), due diligence/inspection period, title and survey, representations and disclosures, allocation of closing costs, prorations (taxes, rent, utilities), tenant leases (if applicable), default remedies, and closing deliverables.

What is due diligence and why does it matter?

Due diligence is the buyer’s review period to inspect the property, financials, leases, zoning, environmental risks, and title issues. It matters because it gives the buyer a chance to confirm the property meets expectations and to cancel or renegotiate if issues are discovered.

How do you handle tenants in a commercial property sale?

If the property has tenants, the agreement should address assignment of leases, delivery of rent rolls, security deposits, estoppel certificates (optional), and prorations of rent. This template includes a tenant section you can customize.

What is earnest money and how is it handled?

Earnest money is a deposit showing the buyer’s intent. It’s typically held in escrow and applied to the purchase price at closing. The agreement should state when it becomes non-refundable and what happens if the deal fails due to contingencies or default.

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