The Commercial Real Estate Contract Form is essential for any commercial property transaction in England and Wales. It serves as the primary agreement between parties buying and selling commercial real estate, ensuring all aspects of the transaction are properly documented and legally binding. This contract type is specifically designed to comply with English and Welsh property law, incorporating necessary provisions for commercial transactions, including title warranties, property rights, and completion requirements. It's particularly important for ensuring clarity on matters such as VAT election, existing tenancies, and development rights.
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1. Parties: Details of the seller and purchaser, including registered addresses and company registration numbers where applicable
2. Background: Context of the transaction, brief property description, and purpose of the agreement
3. Definitions: Defined terms used throughout the agreement including Property, Completion Date, Purchase Price, etc.
4. Property Description: Detailed description of the property including boundaries, rights of way, easements, and restrictions
5. Purchase Price: Amount, payment terms, deposit requirements, and method of payment
6. Title Guarantees: Seller's title warranties and guarantees regarding property ownership
7. Completion: Completion date, requirements, and procedures for transfer of ownership
8. Pre-Completion Obligations: Responsibilities of both parties before completion including searches and enquiries
9. Post-Completion Obligations: Requirements after completion including registration and notifications
1. VAT Provisions: Required if the property is VAT-elected or the transaction is subject to VAT
2. Tenant Provisions: Details of existing tenancies and treatment of ongoing leases
3. Development Obligations: Construction or development requirements if property involves ongoing or planned development
4. Environmental Provisions: Specific environmental obligations or warranties where environmental issues are present
5. Service Charge Provisions: Details of service charge arrangements for multi-let properties
1. Schedule 1 - Property Plan: Detailed plans and drawings showing the property boundaries and layout
2. Schedule 2 - Title Documents: List of title documents and official copies of the register
3. Schedule 3 - Tenancy Schedule: Details of existing tenancies including lease terms and rent rolls
4. Schedule 4 - Property Inventory: List of fixtures, fittings, and equipment included in the sale
5. Schedule 5 - Environmental Reports: Environmental surveys, assessments, and certificates
6. Schedule 6 - Planning Documents: Planning permissions, building regulations approvals, and certificates
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