Commercial real estate contracts can address any number of situations, such as leasing spaces for businesses or warehouses, or even buying property for new construction. Oftentimes, mergers and acquisitions will involve commercial real estate deals and, of course, these transactions can also frequently involve financing arrangements.
In short, a commercial real estate contract of any kind can be a complicated document.
How can you make sure that your business or organization is fulfilling its obligations in a commercial real estate contract?
When it comes down to it, it is usually all about understanding what you might consider to be the fine print in the contract.
Obligations in contract form
Put simply, the obligations of the parties in a commercial real estate contract – and any contract – are intended to be legally binding. There is a reason why we put it in writing. Everyone wants to be very clear about what they are supposed to do in terms of the contract. But, the relationship of the parties to a contract is usually reciprocal. Both parties are obligated to do something.
What happens if one party or the other doesn’t fulfill its obligations in a commercial real estate contract? Litigation, possibly. Or delays, business losses, opportunity losses – the consequences could be quite problematic for all sides.
If you are contemplating entering into a commercial real estate contract, be sure that the contract is carefully drafted for clarity and, as an ongoing support, be sure to have someone available who can make sure your company or organization is doing its part to honor the terms and conditions of the contract.