Speaker 1: A Commercial Real Estate Purchase Agreement allows a seller and a buyer to make a deal that transfers ownership of commercial property in exchange for cash or another trade. This agreement documents the terms of the real estate sale and contains an earnest money deposit. In this video, we'll discuss essential information regarding Commercial Real Estate Purchase Agreements as well as where to get an official template. First, let's begin by clearing up, what is commercial property? Commercial property can be any real estate property intended to generate a profit or provide a workspace for business-related activity. Commercial real estate is not to be confused with residential property, which refers to homes and land used for residential purposes. Commercial properties typically consist of the following, office buildings, retailers such as shops and restaurants, strip malls, hotels, resorts, and motels, healthcare facilities, multi-family rentals, warehouses, and vacant commercial land, meaning the land is located in an industrial zoning area. Keep in mind that commercial properties are usually occupied and used for business purposes and by definition, these properties are situated on commercial zones. Now, let's move on and look at the importance of a commercial real estate purchase agreement. This agreement will allow the buyer and seller to draft a mutually beneficial contract for the purchase of a commercial property. It's important to note that this document alone doesn't transfer the ownership rights, but instead the agreement sets forth the basic details of the purchase, such as the party's names and the address of the property, determines the responsibilities of the buyer and the seller, includes a written agreement for the designated purchase price, details how the buyer will pay, for instance, an all-cash offer or through obtaining bank finance, and can contain an earnest money deposit, typically between 2-5% of the purchase price to validate the buyer's intent to buy. The agreement is introduced early on in a commercial real estate transaction and can be accepted or refused by the seller, yet it's essential to the process since it drives negotiations that lead to a mutually acceptable final agreement. Finally, let's conclude by reviewing what to include in a commercial real estate purchase agreement. The agreement includes most of the terms and conditions for the sale, often making it a complex and lengthy document, therefore, be sure to include the following crucial information. Names and mailing addresses of the buyer and seller, the legal description of the property, purchase price of the property, a detailed description of how the buyer will pay, the amount of earnest money due at closing, the type of deed that will be used to transfer the property, any additional conditions such as inspection periods, the state law that will govern the agreement, an offer expiration date, and the signatures of all parties. Commercial real estate purchase contracts can vary in length, some can be just a few pages while others can be hundreds. It will depend on the terms both parties agree upon, so make sure to be as specific as possible. We're eForms, the largest database of legal documents. Access your free commercial real estate purchase agreement templates at the link below.