When buying commercial real estate, how can I navigate the contract deadlines that could cost me my earnest money?
Transactional attorney, Adam Griffis states, “Commercial real estate purchase and sales agreements are complex.
As you move into your “due diligence” evaluation of the property you are considering, it’s important to make sure you understand all the deadlines and provisos in your agreement.
Normally your earnest money is released to the seller when your feasibility study is complete and you send a Letter of Notice, waiving the contingencies, and telling the seller you’re ready to move ahead. This waiver formally ends the due diligence period.
But I always counsel my clients to be aware of other triggers that might accidentally signify a waiver. It happens more often than you think. Sometimes even inaction at a particular deadline constitutes a waiver that puts your earnest money at risk.
It’s a good idea to consult with a real estate attorney to help you navigate the obligations in your purchase contract and protect you from missing crucial deadlines.”
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