If you`re considering purchasing commercial property, it`s important to fully understand the terms of the agreement you`ll be signing. One common type of commercial real estate agreement is the C.A.R. Commercial Property Purchase Agreement.
C.A.R. stands for the California Association of Realtors, but this type of agreement can be used in other states as well. The agreement outlines the terms of the sale and protects both the buyer and seller in the transaction.
Here are some key terms you`ll find in a C.A.R. Commercial Property Purchase Agreement:
1. Purchase price: This is the amount of money the buyer agrees to pay for the property.
2. Earnest money deposit: The buyer will typically make a deposit when they sign the agreement to show their commitment to the purchase. This deposit is often referred to as “earnest money.”
3. Contingencies: A contingency is a condition that must be met before the sale can be completed. Common contingencies include inspections, financing, and the sale of the buyer`s current property.
4. Closing date: This is the date by which the sale must be completed. It`s important to make sure this date is realistic and gives both parties enough time to complete any necessary tasks before closing.
5. Property condition: The agreement will outline the condition of the property at the time of sale. The seller is required to disclose any known defects or issues with the property.
By using a standard agreement like the C.A.R. Commercial Property Purchase Agreement, both the buyer and seller can feel confident that the terms of the sale are fair and reasonable. If you`re considering purchasing commercial property, be sure to work with a qualified real estate professional who can help guide you through the process and ensure that your interests are protected.