Commercial Sales Contract

Charleston Sales Contract | Charleston Commercial Sales ContractUnlike the residential sales contract, the commercial sales contract does not follow a standardized format and usually varies with each business and real estate transaction. For this reason, it is important for entrepreneurs and business owners to have a firm understanding of the processes involved in a commercial sales contract.

The first step of any sales contract involves a clear communication from the seller to the buyer of the description of the property. The buyer should explicitly map out the extent and boundaries of the property for sale, especially in the case of a commercial sales contract. The two parties should also discuss the terms of personal property. For instance, if a client wishes to purchase an office building complex, then the sales contract should clarify what furniture, appliances and other personal property will be included in the sale of the property.

The second important step of a commercial sales contract includes the purchasing price and plan. Some clients may agree to pay a deposit or earnest money, which are similar to a down payment, to convey to the seller that the buyer is serious about purchasing the property. A notable difference between the deposit and a down payment is that the deposit is usually a reversible transaction should the agreement fail. Most commercial sale contracts will also require the involvement of a mediating escrow to assist in the transfer of money and property between the buyer and seller.

Contract Contingencies

The contractual contingency of a commercial sales agreement are often even more flexible than the contingencies available for a residential sales contract. While a commercial sales contract can include a financing clause and inspection clause much in the same way as a residential sales contract, the agreement could alternatively provide for a zoning clause as well. A zoning clause usually states protects the buyer from sudden rezoning changes and makes the buyer aware of any future plans for the property to be remapped. Environmental contingencies are another popular condition included a commercial sales contract that protects the buyer from potential environmental hazards. An environmental contigency usually provides the buyer with an environmental report of the property so that the buyer can understand the relationship between the property for sale and the surrounding habitat.