Vague terms in a commercial real estate contract can lead to a variety of legal issues. For example, if a lease agreement states that the tenant is responsible for "reasonable maintenance" of the property, this could lead to disagreements about what constitutes "reasonable" maintenance.
Read MoreWHAT ARE CONTRACTUAL CONTINGENCIES IN A COMMERCIAL LEASE?
Contractual contingencies are essentially safety nets in a commercial lease agreement. They are specific conditions or events that must be satisfied by one party for the other party to be required to perform its obligations. If these conditions aren't met, as the tenant you may have the right to back out of the agreement without any adverse legal consequences. For instance, you might include a contingency that the lease term will only commence if you obtain a certain business license. If you fail to get the license, the contingency allows you to terminate the lease without penalty. In the context of getting your commercial lease deposit back, contractual contingencies are crucial. They can protect you from losing your deposit due to circumstances beyond your control.
Read MoreIt is more difficult for the seller to get out of a signed contract than the buyer because if the buyer has competent counsel, their lawyer will include provisions which allow the buyer to terminate the agreement under certain circumstances related to due diligence and financing.
Read MoreA "Time is of the Essence (TIOTE)" clause refers to a clause that can be included at the time of real estate purchase agreements. This clause can come up when one is selling or buying property or working with contractors to build a piece of property and needs a contract.
Read MoreBuying real estate can be a good, revenue generating, investment.
But what happens if, after you sign on the dotted line, doubts creep in and you change your mind and you want to back out of the deal?
Is it even possible? What are the legal implications?
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