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Purchase & Sale Agreements: Commercial Deal Terms

How a commercial purchase agreement differs from a residential agreement of sale.

What is a purchase and sale agreement?

A purchase and sale agreement (PSA) is the contract that governs a commercial property transaction. It does the same job as a residential agreement of sale but is far more detailed, because commercial deals involve leases, income, entities, and financing that a home sale does not.

What makes a commercial PSA different

A commercial PSA typically includes detailed representations and warranties about the property and its leases, a defined due-diligence period with a right to terminate, conditions to closing, prorations of rent and expenses, and remedies tailored to a sophisticated deal. The stakes and complexity make each of these worth negotiating.

Where deals get contested

Disputes often turn on the accuracy of the seller's representations, the scope of the buyer's inspection rights, and what happens to the deposit if the deal fails. Getting these aligned in the PSA is what keeps a closing on track.

How Nochumson P.C. helps

Nochumson P.C. drafts and negotiates commercial purchase and sale agreements for buyers, sellers, and investors — as when we helped an investor buy a 30-unit apartment building. Contact us to structure your deal.

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