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Commercial Property Contract Template for United States

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Key Requirements PROMPT example:

Commercial Property Contract

"I need a Commercial Property Contract for the purchase of a mixed-use retail and office building in downtown Seattle, with specific provisions for existing tenants and environmental compliance, planned to close by March 2025."

Document background
The Commercial Property Contract serves as the primary document governing the sale and purchase of commercial real estate in the United States. This contract type is essential for businesses, investors, and property developers looking to acquire or dispose of commercial properties. It includes crucial elements such as property specifications, financial terms, due diligence periods, and closing requirements. The document must comply with both federal and state-specific real estate laws, incorporating local zoning requirements, environmental regulations, and building codes. It's designed to protect both parties' interests while ensuring a clear framework for the transaction's completion.
Suggested Sections

1. Parties: Identifies all parties to the contract, including legal names and addresses

2. Background/Recitals: States the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the contract

4. Property Description: Detailed legal description of the property including address and boundaries

5. Purchase Price: States the agreed purchase price and payment terms

6. Due Diligence: Outlines the buyer's right to inspect and investigate the property

7. Closing Conditions: Lists conditions that must be met before closing

8. Representations and Warranties: Statements of fact by both parties about the property and transaction

9. Default and Remedies: Describes what constitutes default and available remedies

10. Governing Law: Specifies which jurisdiction's laws govern the contract

Optional Sections

1. Financing Contingency: Optional section to include when buyer requires financing to complete purchase

2. Environmental Matters: Optional section addressing environmental investigations and liabilities for industrial properties or properties with potential contamination

3. Tenant Rights: Optional section addressing existing tenant leases and rights when property has current occupants

4. Development Rights: Optional section covering future development possibilities and restrictions for properties with development potential

Suggested Schedules

1. Schedule A - Property Plans: Detailed plans and drawings of the property

2. Schedule B - Title Documents: Current title report and related documents

3. Schedule C - Environmental Reports: Environmental assessment reports and findings

4. Schedule D - Existing Leases: Copies of current tenant leases

5. Schedule E - Property Condition Report: Detailed report on property condition and systems

6. Schedule F - Service Contracts: List of existing service contracts and maintenance agreements

7. Schedule G - Permits and Licenses: Copies of current permits, certificates of occupancy, and licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Americans with Disabilities Act (ADA): Federal law requiring commercial properties to be accessible to individuals with disabilities, including specific requirements for building features and accommodations

Fair Housing Act: Federal legislation prohibiting discrimination in real estate transactions, particularly relevant for mixed-use properties

EPA Regulations: Federal environmental protection standards including hazardous materials handling, waste management, and environmental impact considerations

Federal Tax Laws: Regulations governing taxation of commercial property transactions, income, and related financial matters

FIRPTA: Foreign Investment in Real Property Tax Act governing tax implications for foreign persons selling U.S. real estate

State Property Laws: State-specific regulations governing real property ownership, transfer, and rights

State Landlord-Tenant Laws: State-specific regulations governing the relationship between property owners and tenants

State Zoning Regulations: State-level rules determining permitted property uses and development restrictions

State Environmental Regulations: State-specific environmental protection requirements and compliance standards

State Building Codes: State-specific construction and maintenance standards for commercial properties

State Licensing Requirements: Regulations governing professional licensing for real estate transactions and property management

State Disclosure Requirements: State-mandated disclosures regarding property condition, hazards, and material facts

Local Zoning Ordinances: Municipal-level regulations governing property use, development, and restrictions

Municipal Building Codes: Local construction and maintenance standards specific to the municipality

Historic Preservation Laws: Regulations protecting historically significant properties and districts

Fire and Safety Codes: Requirements for fire prevention, suppression systems, and safety measures

Health Department Regulations: Health and sanitation requirements for commercial properties

Property Tax Regulations: Rules governing assessment, payment, and administration of property taxes

Title and Deed Requirements: Legal requirements for property ownership documentation and transfer

Recording Requirements: Regulations governing the recording of property documents with local authorities

State Contract Laws: State-specific requirements for valid contract formation and enforcement

Uniform Commercial Code: Standardized business laws affecting commercial property transactions

Real Estate Broker Requirements: Professional licensing and conduct requirements for real estate brokers

Professional Liability Considerations: Legal requirements and best practices for professional liability protection

Insurance Requirements: Mandatory and recommended insurance coverage for commercial properties

Title Insurance Regulations: Requirements and regulations governing title insurance for commercial properties

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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