What to Look for in a Commercial Real Estate Contract
March 2, 2026
Whether you're buying your first commercial property or closing your tenth deal, the purchase agreement is the most important document in the transaction. Here are the key provisions you should scrutinize before signing.
Due Diligence Period
Negotiate adequate time to inspect the property, review financial records, and assess environmental risk. Once the due diligence period expires, you may lose the right to back out.
Representations and Warranties
What is the seller telling you about the property's condition, existing leases, and pending litigation? These representations form the basis of your legal recourse if problems surface post-closing.
Financing Contingencies
If your purchase is contingent on securing financing, make sure the contingency language is specific about terms, timeline, and what happens if financing falls through.
Assignment Rights
If you're buying as part of a 1031 exchange or plan to bring in investors, ensure you have the right to assign the contract or take title in a different entity.
The Rhodes Law Firm represents buyers and sellers in commercial transactions throughout Louisiana. Contact us before you sign.