Facts about the Commercial Real Estate Contract PDF template
- 1 Facts about the Commercial Real Estate Contract PDF template
- 2 What Is a Commercial Real Estate Contract PDF Form Used For?
- 3 Who Would Use a Commercial Real Estate Contract PDF Form?
- 4 When Should a Commercial Real Estate Contract PDF Form Be Used?
- 5 What Are the Consequences for Not Using a Commercial Real Estate Contract PDF Form?
- 6 How to Fill Out a Commercial Real Estate Contract PDF Form
- 7 Quick Questions
What Is a Commercial Real Estate Contract PDF Form Used For?
This type of contract is a reflection of the sales agreement during a property transaction. As long as the contract has been negotiated correctly, the majority of potential issues will be avoided. It’s important that the right contract form be used, especially because of how much money is invested in any kind of real estate purchase.
When a seller creates their purchase contract, it’s possible that other documentation might be required. Potential documents include:
- Lead paint disclosures
- A seller’s disclosure
- Any power of attorney documents
- A promissory note
All of the terms negotiated between the parties must be included in the form. It’s helpful to have at least one attorney double check the terms to make sure that the language is legally binding. Attorneys will also have a working knowledge of the laws in whatever state the property transaction is occurring in.
Who Would Use a Commercial Real Estate Contract PDF Form?
There are two main parties involved in this contract: a buyer and a seller. The seller is the person who currently owns the property. The buyer is giving them an agreed-upon sum of money to purchase their real estate. Attorneys for the buyer and seller may also be involved. In certain states, it’s required that an attorney be present during the negotiations.
Both parties will meet to discuss the contract, going over it paragraph by paragraph. It’s important that neither party sign until they’re certain they understand all aspects of the contract.
When Should a Commercial Real Estate Contract PDF Form Be Used?
This type of contract must be used whenever a real estate transaction is happening between two parties. It has to do with the sale of commercial buildings rather than residential ones.
What Are the Consequences for Not Using a Commercial Real Estate Contract PDF Form?
The seller is legally required to create one of these forms for the buyer. It is a legally binding contract. If any disputes arise over any aspect of the sale, this contract is the first place that the lawyers will consult. The contract also smooths the potential for conflict by making sure everyone is on the same page. This makes the process of the title transfer and payment much easier.
How to Fill Out a Commercial Real Estate Contract PDF Form
The seller will be the party responsible for drafting the bulk of the contract. They should take down the information of both involved parties, including their names, physical addresses, and contact information. They should also provide the names and contact information of any involved attorneys.
The contract will need to state the physical address at which the real estate exists. It will also need to list the agreed-upon purchase price of the property. The seller will receive this purchase price all at once, while the buyer will likely make payments to the bank regarding their loan.
If any appliances, furniture, or extra property are included in the sale, they should be listed in the contract. The seller should also provide proof that they have had all the required inspections and maintenance done. This might include giving copies of the inspection reports.
Before the title can be transferred, both parties will need to sign the contract. Their attorneys will also need to sign. In some states, they will be required to take the contract to the notary public in the county the property resides in. The form should be signed in front of the notary, who will then notarize that it is official.
Copies of the form should be filed with the buyer, the seller, their attorneys, and the county clerk’s office of the county that the property is inside.