How to Fill Out a Commercial Real Estate Contract

If you`re looking to lease or sell commercial property, it`s essential to know how to fill out a commercial real estate contract. This legal document outlines the terms of the transaction, including the sale price or lease rate, the length of the agreement, and any contingencies or conditions that must be met.

Here are the steps to follow when filling out a commercial real estate contract:

1. Identify the parties involved

The first section of the contract should specify who is entering into the agreement. This will usually include the property owner (the “landlord” or “seller”) and the tenant or buyer.

2. Describe the property

The contract should include a detailed description of the property, including its address, size, and any amenities or features that may be included in the lease or sale.

3. State the terms of the agreement

The most important part of the contract is the section that outlines the terms of the transaction. For a lease agreement, this will include the rental rate, the length of the lease, and any other conditions or restrictions. For a sale agreement, this will include the purchase price, the payment terms, and any contingencies or conditions that must be met.

4. Include any additional clauses

Depending on the nature of the transaction, there may be additional clauses that should be included in the contract. For example, a lease agreement may include a provision for rent increases over time, or a sale agreement may include a clause stating that the sale is contingent on the buyer securing financing.

5. Get all parties to sign

Once the contract has been drafted, all parties involved should sign the document. This ensures that everyone is in agreement with the terms of the transaction and can help prevent disputes or misunderstandings down the line.

In conclusion, filling out a commercial real estate contract may seem daunting at first, but following these steps can help ensure that the transaction is legally binding and meets the needs of all parties involved. If you`re unsure about any aspect of the contract, it`s always best to consult with a qualified real estate attorney or broker.