Commercial Purchase Contract and Personal Property

Charleston Purchase Contract | Charleston Commercial Purchase ContractThe commercial purchase contract acts as the legal counterpart to the commercial sales contract for any real estate transaction involving the sale, purchase and change in ownership of commercial real estate. Constructing a clear definition of the included property available for purchase is a crucial first step for any commercial purchase contract. Many commercial purchase contracts will include some existing furnishings, appliances or other personal properties, but it is important for the seller to clarify which personal properties will and will not be included.

Any discrepancies in the included personal property can be grounds for future real estate litigation, especially for large businesses, so it is important for the seller to avoid unnecessary legal battles with a well-communicated list of involved personal properties. Some sellers may even structure their commercial purchase contract as a variation of an asset purchase agreement, where the real estate is the primary asset, in order to avoid confusions over personal property.

Although an unclear explanation of the assets included under a commercial purchase contract primarily seem to burden the seller, the buyer can also suffer from misunderstandings regarding personal property. The buyer should ensure that the commercial purchase contract clearly addresses the assumption of debt. In some cases, the buyer may believe that a property can only benefit by including additional personal property when at times this personal property may entail an assumption of debt that outweighs the face value.

Our Charleston real estate attorneys provide legal counsel to buyers and sellers in the construction of commercial sales contracts and commercial purchase contracts to explore the advantages and issues of personal property. The decision to include personal property can be incredibly advantageous or damaging. This choice is ultimately circumstantial to the needs of the client and their business, requiring careful legal examination in order reach a smart conclusion.