The « Closing » section of the EPI generally covers the documents to be provided to the fiduciary, how the remaining amount of the purchase price is delivered and the distribution of costs between the parties. The closing process is also explained in more detail below. While each of these themes can be widely expanded, this is a good overview of the steps you should consider as a buyer of commercial real estate in California. Your broker should help you get the necessary items and a real estate lawyer can check them to make sure you are protected from the many potential risks in each transaction. The AIR agreement requires arbitration under the Commercial Rules of the American Arbitration Association, requires the forfeiture of many normal rights in litigation, and requires that each arbitrator be an impartial real estate agent with at least 5 years of full-time experience, both in the area in which the property is located and in the nature of the real estate involved. Personally, I do not want a non-lawyer (or non-judge) to make a final decision that cannot be challenged. That is why I propose to the parties not to approve the arbitration provision as set out in the AIR agreement. Check the California Residential Purchase Agreement (broker form or Attorney Drafted) – A legal document that establishes a sale of residential real estate between a seller and a buyer. A California purchase and sale contract is a document that is introduced early in a commercial real estate transaction. This legal contract is developed and negotiated by the parties (buyers, sellers and fulfillers) as soon as brokerage contracts are signed and a letter of intent is forwarded from the buyer to the seller. A purchase and sale agreement defines terms and conditions such as sale price, financing, authorizations and consents, rental options and pre-closing and closing conditions.
The parties will negotiate all of these conditions until they reach a mutually acceptable and beneficial agreement to which they will sign the agreement. Most « commercial brokers » will use the AIR form if they represent a seller because he has passive contingencies (automatic removal). CAR forms are usually used when the broker is not part of the AIRCRE organization that concedes these forms. The CAR form is usually cheaper for a buyer. I am a member of both organizations and I use AIR and CAR forms. I also used CAR forms for sellers, as for everything, it depends. 😊 All blogs on this website are exclusively educational, do not constitute legal advice or opinions and should not be applied to your or a particular situation without consulting the lawyer.