Commercial Real Estate Contracts

Commercial Real Estate Contracts

Commercial real estate contracts are vital to any business transaction involving real estate properties. They are legally binding agreements between parties that outline the terms and conditions of a commercial real estate deal. A well-drafted commercial real estate contract can protect the interests of all involved parties, and prevent costly legal disputes down the line.

Here are some important factors to consider when drafting or reviewing a commercial real estate contract:

Parties Involved

The contract should clearly state who the parties involved are, such as the buyer and seller, and identify any brokers or agents involved. It should also specify who has the authority to sign the agreement on behalf of each party.

Property Description

The contract should include a detailed description of the property being bought or sold. This should include the property address, size, boundaries, zoning restrictions, and any other relevant information.

Purchase Price and Payment Terms

The contract should specify the agreed-upon purchase price, as well as how and when payment will be made. This may include the amount of any down payment, financing terms, and deadlines for payment.

Contingencies and Conditions

Contingencies and conditions are requirements that must be met before the contract is binding. These may include inspections, appraisals, and obtaining necessary permits or approvals. The contract should clearly outline any contingencies and conditions, and the deadlines for meeting them.

Closing and Possession

The contract should specify the date and location of the closing, as well as when possession of the property will be transferred. It should also outline any prorations or adjustments to be made at closing, such as property taxes or rental income.

Default and Remedies

The contract should outline what happens if one party fails to meet their obligations. This may include penalties, termination of the contract, or legal action. It is important to have a clear understanding of the consequences of default before signing the agreement.


Commercial real estate transactions can be complex and involve large sums of money. Ensuring that all parties involved have a clear understanding of the terms and conditions is essential in preventing disputes and protecting interests. By considering the above factors, you can help ensure that your commercial real estate contract is thorough, legally sound, and serves the interests of all parties involved.

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