If the seller`s main concern is to get a final sales contract that is more favorable to the seller and the seller is willing to endure one or two additional rounds of negotiations and a few additional attorney fees to achieve this goal, a custom form may be more appropriate. Paragraph 22.2 of the AIR Agreement benefits the seller if the seller wins. It provides that if lawyers are hired to represent the parties, the parties need less time to review and negotiate the terms of the sales contract. This often results in the fiduciary service being opened more quickly and lawyers` fees are lower at the hearing of the purchase and sale contract. The CAR agreement requires the arbitrator to be a lawyer, unless the parties decide otherwise. Paragraph 26. B of the CAR Agreement requires the arbitrator to be a retired judge or a lawyer with at least 5 years of experience in transactional real estate law, unless the parties mutually agree with another arbitrator and entitle the person to discovery. This provision is better than the AIR agreement, which requires a broker and not a real estate lawyer. CAR, paragraph 26.B.
„The arbitrator shall be a retired judge or judge, or a lawyer with at least 5 years of experience in transactional real estate law, unless the parties mutually agree with another arbitrator.” This article focuses on the sale of commercial property and highlights some important differences between the AIR CRE Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate (non-residential) (known as the „AIR Agreement”) and the CAR Commercial Property Purchase Agreement And Joint Escrow Instructions (NON-RESIDENTIAL) (referred to as the „CAR Agreement”). Although the provisions of these agreements may be modified by deletions and additions, the following discussion is based on the standard provisions of both agreements. Estoppel certificates are a critical part of most commercial real estate transactions, as they are a legally binding document in which a tenant represents or promises certain things regarding their lease or lease. The subjects usually mentioned in an Estoppel certificate relate to the tenant`s relationship with the lessor and the status at the time of the certificate with regard to certain conditions of the lease. The AIR Agreement and the CAR Agreement also differ with regard to Estoppel certificates. Do you use the AIR sales contract? What provisions are you changing? Post your comments or questions below….