Refusal to Close on a Commercial Real Estate Contract

If the real estate contract is silent as to what happens if the seller defaults, then in most states, the buyer can go to court and sue for specific performance. This type of lawsuit does not demand monetary damages – it demands performance on the contract. When the buyer is the one who refuses to close, the seller can try to sue for money damages. The problem here is that many buyers who back out often did not have a preapproval to start with; instead, they just had a prequalification.

→ Read More

Using a Letter of Intent in a Commercial Real Estate Transaction

A letter of intent is generally a good idea for a purchase of commercial real estate. Letters of intent enable you to know, before the contract is even worked out, that you and the seller agree on the major terms of the deal. There are obvious benefits to knowing this information before you put the time and expense into preparing the contract itself.

→ Read More

Necessity of a Written Contract for the Purchase or Sale of Commercial Property

As a general matter, contracts for the sale of real property are governed under common law rules. One very old common law rule that is still in place today in every state is called the Statute of Frauds. Under the Statute of Frauds, certain contracts have to be in writing in order to be considered legally valid. Contracts for the purchase or sale of any type of real property, including commercial real estate, are one such example of a requirement that a contract be in writing.

→ Read More

Remedies When the Seller Refuses to Complete the Sale Under the Contract

Assuming you have fulfilled all that was required of you under the contract for the building purchase, and assuming the contract meets all the requirements to be considered legally valid, you have two major options if the seller refuses to follow through before closing the building purchase: suing for specific performance, and suing for monetary damages.

→ Read More

Contingencies in Commercial Real Estate Contracts

Real estate contracts almost always contain “contingencies,” i.e. – a condition or set of conditions on performance –written into the contract itself. They’re called contingencies because if they don’t occur, the entire contract can be legally thrown out without penalty. In this sense, contingencies are like escape hatches in real estate contracts. They are very common add-ons to contracts, and are often practically necessary.

→ Read More

Renewing Your Commercial Lease

If your commercial for lease agreement is expiring but your business is comfortable in its current office space, you’re probably planning to renew. Here are a few things to keep in mind when renewing your commercial for lease agreement.

→ Read More

Common Mistakes When Renting Office Space

Signing the lease on your new office space should be an exciting moment. Learn how to avoid mistakes commonly made by other business owners when renting office space, so you can start your business off on the right foot.

→ Read More