A conveyance of commercial real estate involves the same basic
principles as the conveyance of residential real estate. Despite
the agreements being for a larger value, closing dates, title
searches, requisitions, and many other factors relevant to
residential transactions apply equally to commercial
transactions.
There are however additional considerations that both the
purchaser and seller must turn their mind to when dealing with
commercial real estate. For example, the tax implications of the
transaction should be considered by both sides and the purchase
price should be properly allocated among the depreciable assets in
order to take advantage of tax planning opportunities. In addition,
both parties should turn their mind to the assignment of existing
contracts. The purchaser will want to know which obligations it
will have to continue with and the vendor will want to know if all
their contracts can be assigned or terminated without incurring
additional costs.
