The Top 10 Items to Review in a PSA before signing
Below are the top 10 items you should review in your commercial real estate purchase contract:
Purchase Price: Review the purchase price carefully to ensure that it accurately reflects the current market value of the property.
Due Diligence Period: Make sure the contract provides adequate time for conducting due diligence, including property inspections, zoning verification, environmental assessments, and other important investigations.
Closing Date: Confirm that the closing date allows enough time to complete all necessary steps before closing, such as obtaining financing and resolving any issues uncovered during due diligence.
Earnest Money Deposit: Understand the amount and timing of the earnest money deposit, which demonstrates the buyer's commitment to the transaction.
Contingencies: Check for any contingencies that need to be met before the closing, such as obtaining financing or securing necessary permits.
Title and Survey: Confirm that the seller will provide a clear and marketable title, free of liens, and that the survey accurately reflects the property boundaries.
Representations and Warranties: Ensure that the seller has made accurate and complete representations and warranties about the property's condition and that they will indemnify the buyer for any inaccuracies.
Disclosures: Review all disclosures made by the seller, including any known defects, environmental hazards, or other material issues that could affect the property's value or use.
Closing Costs: Understand the allocation of closing costs between the buyer and seller, including any fees or commissions paid to brokers, attorneys, or other parties.
Remedies and Default Provisions: Review the remedies and default provisions in the contract, including any provisions for specific performance, liquidated damages, or termination of the contract in the event of default.
If you have any questions about this article or would like to discuss a scenario of your own with our team, please feel free to contact Colin Dubel at firstname.lastname@example.org or 949-735-6415.