New York was, and continues to be, one of the largest commercial real estate markets in the world. According to New York City mayor, Eric Adams, commercial real estate in New York City managed to maintain 92 percent of its value, despite the challenges of the past few years. This means that while things are changing, the commercial real estate market in New York is still alive and well.
If you are purchasing commercial real estate in New York, you will have to sign purchase/sale agreement. The agreement may include:
- Sale price: The agreement will specify the price of the property, as well as sources of financing, type of loans used, and other details regarding payment.
- Property condition: Many sale agreements for commercial property specify that the property is being sold “as is” with no warranties.
- Property description: Details about the building itself, as well as appliances, fixtures, and any additional property should be included.
- Inspection terms: Terms specifying that the buyer agrees to purchase the property once an inspection is performed. The type of inspections (e.g., plumbing, emissions) will also be specified. In many cases, the agreement will state that if a buyer does not purchase the property, they will lose their deposit.
- Breach of contract: The agreement should specify what will happen if the contract is breached by the buyer or the seller.
It is easy to leave out important details when drafting a purchase agreement for the sale of a commercial property. As a result, many buyers and sellers end up in costly, time-consuming contract disputes. An attorney specializing in commercial real estate can help draft and negotiate your agreement to ensure that no material terms are overlooked.