Some businesses purchase real estate to house their operations.  Transactions to buy office buildings and warehouses are quite similar.  Residential purchasers will recognize many similarities as well.

After the parties agree on a price, seller’s counsel will send a contract to the buyer and request a down payment.  Buyer’s counsel should carefully review the contract.  Depending on the language and nature of the property, negotiations can be extensive.  In the contract, the buyer will request “representations” about current information (e.g., the presence of tenants) and “warranties” about future conditions (e.g., there will be no tenants at the time of closing).  Parties will request covenants promising future action (e.g., the seller will remove tenants).  If the parties agree to convey business property along with the real estate, sales tax must be paid.

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