Monday, 25 November 2013

Provisions of a Commercial Real Estate Contract

A recent real estate article lauds Calgary as one of four cities in Canada that have fueled the country's booming residential and commercial real estate market for October 2013. The future remains uncertain although it can't be denied that plenty of opportunities for real estate buyers and sellers in the country still exist. In any case, anybody who wishes to buy commercial real estate in Calgary should know about the provisions of a typical real estate contract before signing.

First, buyers must take note of the deposit, which involves making an early payment as principal with the help of a solicitor or broker. The deposit must be refundable to protect the buyer’s interest of the buyer. Title investigation comes next, and this requires the buyer to inspect the property until he or she satisfied with its structural and aesthetic aspects. Forgoing this provision means that the buyer is willing to buy the property as is and frees the seller of any responsibility. On the other hand, the seller is also obliged to provide the buyer with a survey of the property.

Finally, a real estate contract should always list down every item found in the property for sale, especially all of the fixtures (objects that are “part of the land”), and chattels (objects considered “personal property”) found in the property. This step can prevent legal complications in the future (for example, buying a plot of land that contains actually public property) for both the buyer and seller.

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