Purchasing and selling commercial real estate in Florida is often a complex and lengthy process because
each transaction may differ due to a variety of factors. Some of these factors include state, county, and
local laws, industry-specific considerations, market trends, a purchaser’s intent, the method of
financing, and the timing of the closing.
In this article, you will be able to better understand the basics of a commercial real estate purchase and
sale process.
Purchase and Sale Agreement
A real estate purchase and sale agreement is a hybrid of state laws governing contracts and those
governing real estate. Every provision is up for negotiation. The purpose of a purchase and sale
agreement is to specify each party’s rights, obligations, and liabilities; it details the steps of the process
and defines the property being conveyed.
Closing Documents
Closing documents include, but are not limited to, the deed, bill of sale, an assignment of contract rights,
a certificate that no tax is to be withheld under the Foreign Investment in Real Property Tax Act of 1980
(FIRPTA), closing statement, transfer taxes, and real estate taxes.
Post-Closing
Sometimes parties’ obligations do not end with the closing. There might be some other steps that
should be followed after closing such as ensuring that all required notices to tenants and service
contract providers are delivered promptly following the closing and ensuring the filing and recording in
the county recording office of all original documents requiring recordation.
