When purchasing real estate for your business, you want to ensure things go smoothly. The property is perfect, and you believe it will take your shop to the next level. The only problem is you aren’t sure how to read the purchase agreement. Experts in commercial real estate should be able to help you determine what you need to be aware of before you sign on the dotted line. Take a look at three elements to watch for in a real estate agreement.
1. Parties and Property Details
Make sure the parties’ names are correct in the opening paragraph, and that the appropriate labels of Buyer and Seller have been assigned. Next, check and make sure that the property address, including suite number, is right. The last thing you want to do is to pay money for something that wasn’t for sale. Looking over a contract to purchase property may take the keen eye of a real estate attorney austin tx to ensure everything is in order.
2. Purchase Price, Deposits and Inspection
The purchase price section is crucial as this is the total amount of money the buyer is expecting from you. There may be other details in this section, such as:
- Deposit money due
- Dates or benchmarks at which the deposit becomes non-refundable
- Escrow amount and holdings
Another thing you want to look at are the terms for the site inspection. You or your representative will have the right to do a thorough examination of the property, but the date is usually spelled out. Once that date passes, typically, either another deposit is due, or the current deposit can’t be refunded.
If either party breaks any part of the contract, there should be a section in the agreement setting out the repercussions. This is called the breach and remedy section and is crucial in making sure the party who is in breach has to pay up.
Real estate contracts can be tricky, especially if you haven’t done it. If you want to be sure your plans move forward, contact a real estate attorney for guidance.