In the first place, a sales contract must encircr the property at stake. It should contain the exact address of the property and a clear legal description. In addition, the contract should include the identity of the seller and the buyer or buyers. The sales contract should include the offer price accepted by the seller as well as the means with which it is supplied. Common methods are full payment in cash, with a deposit and a new mortgage, or with an agreement that includes an existing mortgage. This information may be detailed in the sales contract or additional financing may be included in order to clearly describe the buyer`s accounting and credit situation. A real estate purchase contract contains information such as: As a buyer, the art of buying commercial property is to find the investment that suits your needs. The purchase price usually reflects current market conditions and the income it generates when there are tenants on the land. Serious money deposit: A serious deposit is a deposit that shows the good faith and obligation of the buyer to continue the purchase of the property. In return for the buyer`s serious money deposit, the seller withdraws the property from the market.
At the end of the purchase, the deposit of serious money is charged to the purchase price. When the contract is terminated in accordance with the terms of the contract, the serious deposit is usually returned to the buyer. Negotiate detailed work and building specifications that must be met in order for “milestone payments” to be made. Milestone payments are partial periodic payments made by the buyer to compensate you for the construction costs of the building. Insist that a neutral third party have the right to verify your work and authorize payment. This section of the agreement should be accompanied by a detailed construction schedule giving you enough leeway to experience significant construction delays without violating the agreement. Closing: Closing is the last step in a real estate transaction between buyer and seller. All agreements are concluded, money is exchanged, documents are signed and exchanged, and title to the property is transferred to the buyer….