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How to draft a purchase agreement

On Behalf of | Mar 21, 2019 | commercial real estate

The purchase agreement is one of the most important documents you will create when buying a commercial property in Louisville. This agreement is so important that one tiny mistake could nix the deal in a heartbeat. Make sure you know how to write a purchase agreement by following the tips.

A purchase agreement must have all of the following information in it in order to protect both the buyer and seller:

  • Full names and addresses of both parties
  • Address of location to be sold
  • Agreed upon price for the sale
  • Require a title search conducted by the seller
  • Explain the deed that will be conveyed to the buyer
  • Explain the amount of assistance provided by the seller to the buyer, if needed
  • Include the deposit amount the buyer will provide with the agreement
  • Include the desired date of closing along with conditions under which the date can be changed after being agreed upon
  • List any items that will remain in the commercial property, if any, and a list of items that must be removed
  • List any repairs that must be made before the property changes hands
  • Make it clear that the commercial space must be cleaned before the sale is complete
  • Include contingency clauses in the agreement
  • Both parties need to sign and date the purchase agreement in the presence of a notary

When you find a commercial space that fits the needs of your business, you will want to snatch it up quickly before anyone else can swoop in and buy it. Be sure your purchase agreement is written with strong language that protects you as the buyer in Kentucky.