Seller Representations and Warranties in Commercial Real Estate Purchase Agreements
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In keep a buyer and seller grounded in a commercial real estate purchase, there need to be ground rules before a property officially changes hands. Seller representations and warranties usually include: that the seller is authorized to sell the asset, that the seller is not in bankruptcy, that the seller is a "non-foreign person". Representations about the building include: information about the leases and occupancy rights, notices of code compliance, the actual knowledge of a responsible person, subsequent changes will be communicated to the buyer, notices of litigation and survival of liability past the purchase.
In keep a buyer and seller grounded in a commercial real estate purchase, there need to be ground rules before a property officially changes hands. Seller representations and warranties usually include: that the seller is authorized to sell the asset, that the seller is not in bankruptcy, that the seller is a "non-foreign person". Representations about the building include: information about the leases and occupancy rights, notices of code compliance, the actual knowledge of a responsible person, subsequent changes will be communicated to the buyer, notices of litigation and survival of liability past the purchase.
