California Residential Purchase Agreement – A legal document that establishes a sale of residential real estate between a seller and a buyer. All blogs on this website are used only for educational purposes, do not constitute legal advice or opinions and should not be applied to your or a particular situation without consulting the lawyer. Strategic law, LLP does not offer legal advice on all topics discussed on a blog, except in case of formal commitment, including, but not only to the implementation of strategic law, the formal legal service agreement of LLP, and on certain issues. No blog provides a guarantee, guarantee or prediction regarding the outcome of legal issues discussed on the blog or presentation. When it comes to commercial real estate, parties can often use a sales contract for AIR Commercial Real Estate (“AIR CRE”). If a transaction involves the sale of real estate, the parties may benefit from a sale contract from the California Association of Realtors (CAR). In addition to residential real estate contracts, CAR also offers contracts for the sale of commercial properties. The CAR agreement is more restrictive because it requires the seller`s approval for any transfer of the buyer`s interest in the agreement. From a practical point of view, the buyer can give in because it would probably be unreasonable for the seller to withhold consent. But this clause can give rise to unnecessary litigation if the seller wants to play games.
The provision because is included in paragraph 30 in a relevant part: Confirm the entity-Who buys the property and how will they hold? (Examples: LLC, LP, Common Lease or Corporation) Estoppel certificates are an important part of most commercial real estate transactions, as they are a legally binding document in which a tenant represents or promises certain things regarding his lease. The subjects usually presented in an Estoppel certificate relate to the tenant`s report to the lessor and the status at the time of certification under certain rental conditions. The AIR agreement and the CAR agreement also differ with regard to estoppel certificates. The AIR agreement does not require the seller`s agreement for the buyer to waive his rights to the agreement. Paragraph 1.1. of the AIR agreement provides that “the buyer has the right to cede the buyer`s rights, but such an assignment does not exempt the buyer from the buyer`s obligations, unless the seller expressly lays off the buyer.” As a result, the purchaser may freely transfer the contract to a third party, whether or not the transferee is controlled by the buyer or by a third party. The AIR agreement and the CAR agreement have some advantages, including, but not limited, familiarity with the terms of the contract and a quicker review of contracts. However, despite their current use for commercial real estate transactions, the main distinctions between the AIR agreement and the CAR agreement should be carefully considered by lawyers and their clients. 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.