Florida is a hub for commercial real estate transactions, and many of these deals are governed by contracts that outline the transactions’ terms and conditions. These contracts are often complex and include various provisions designed to protect both the buyer and seller. Understanding these standard commercial real estate contract provisions is essential for anyone involved in a real estate transaction in Florida.
Purchase price
One provision in a commercial real estate contract is the purchase price. This section outlines the amount the buyer will pay for the property, which may also include contingencies. For example, the contract may specify that the sale is contingent on a buyer obtaining financing or that the sale is dependent on the property passing certain inspections.
Closing date
Another standard provision in a commercial real estate contract is the closing date. This section outlines when the transaction is to complete and when the property will transfer from the seller to the buyer. The closing date is often contingent on various conditions being met, such as the property passing certain inspections or a buyer obtaining financing.
Due diligence
The due diligence period is another commercial real estate contract provision. This is when the buyer can investigate the property, review the title and other documentation, and perform other necessary activities to determine whether the property is suitable for his or her needs.
Terms and conditions
These provisions may also include a variety of other terms and conditions that are specific to the transaction. For example, the contract may have warranties, covenants and representations that the seller makes about the property and the transaction. These provisions are designed to protect the buyer and ensure that the property is in the condition that was represented at the time of sale.
Know the provisions
Whether you are a buyer or a seller, it is important to be informed about the provisions included in commercial real estate contracts. Negotiating the contract’s terms can also be a crucial step in securing a favorable outcome in the transaction. Being informed and familiar with the different provisions can greatly benefit all parties involved.
