We are trying to sell a commercial building. Our realtor told us that she is using a residental contract because the commercial contract favors one party over another. Is this kosher? It doesn't seem to be.

I don't want to throw anybody under the bus, but you can draw a fair contract concerning most anything. Most contracts we use are furnished by the Atlanta Commercial Board, and most people consider them very fair and straight forward.

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Wade Sonenberg

Atlanta Commercial Blog & Forum || Roswell Office Space ||
Georgia Land Sales & Comps

It could be the case. Contracts vary from state to state and even board to board so the only one that could really answer this correctly would be an agent that is in the same board as your agent. If you have a real concern about it I would call her broker and have a little talk with him/her.

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My thoughts on the Sarasota Association of REALTORS actions.

The sounds of this really rubs me the wrong way.

Further, depending on property type, residential contracts are not written to cover the needs of commercial real estate. Unless this is a small piece, I'd really consider spending a few extra bucks and getting a real estate attorney. (an actual real estate attorney)

When does the money go hard? Contract signing, after DD period? What DD items are required? Can you provide the DD items before contract signing and go hard with contract.

Additionally, who does the contract favor? You or the buyer. If it favors you... yeah, use the commercial contract. You can always strike out paragraphs on any contract as well...

Another thing is that it's not atypical for an LOI to go out, and attorneys to prepare contracts based on the LOI with the basic terms agreed upon.

RainmakerWebDesign has a good point too. In NYC we had standard commercial contracts and leases too, then the attorneys would add about 20 pages of addendums and other contract points. NYC was an attorney state though, so I'd get the key points to LOI and pass off to an attorney after that.

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