Agreement of Purchase and Sale – Condominium Resale Commercial: Understanding the Key Points
The Agreement of Purchase and Sale (APS) is a binding document that outlines the terms and conditions of a real estate transaction. It is important for both buyers and sellers to understand the key points of the APS to avoid any misunderstandings, disputes, or legal complications.
When it comes to a condominium resale commercial, there are some specific considerations that need to be taken into account. In this article, we will discuss the key points one should keep in mind when signing an APS for a commercial condominium resale.
1. Price and Payment Terms
The price of the commercial condominium resale should be clearly stated in the APS, along with any applicable taxes and fees. The payment terms, including the deposit amount, payment schedule, and the mode of payment, should also be clearly specified in the APS.
2. Condition of the Property
The APS should include a detailed description of the property, including any fixtures, chattels, appliances, or equipment that are included in the sale. Any defects, damages, or issues with the property should also be disclosed by the seller and included in the APS. It is important for buyers to inspect the property thoroughly before signing the APS to avoid any surprises later on.
3. Closing Date and Possession
The APS should clearly state the closing date of the transaction, which is the date on which the buyer takes possession of the property. The possession date should also be specified in the APS, which is the date on which the buyer can physically occupy the property. Both the buyer and seller should agree on these dates and ensure that they have enough time to complete all necessary tasks before the closing and possession dates.
4. Representations and Warranties
The APS should include representations and warranties by the seller, which are statements that assure the buyer about the condition, ownership, and legality of the property. The seller should disclose any material facts or information that may affect the buyer`s decision to purchase the property. The buyer should carefully review these representations and warranties and seek legal advice if necessary.
5. Closing Costs
The APS should specify who will pay for the various closing costs associated with the transaction, such as legal fees, land transfer taxes, title insurance, and any other expenses. These costs can add up quickly, and it is important for buyers and sellers to agree on who will bear these costs before signing the APS.
In conclusion, the APS for a commercial condominium resale is a crucial document that outlines the terms and conditions of the transaction. Buyers and sellers should pay close attention to the key points mentioned above and seek legal advice if necessary to ensure a smooth and successful transaction. With proper due diligence and attention to detail, both parties can benefit from a profitable and stress-free real estate deal.