The purchase or sale of real estate is one of the most significant transactions for entrepreneurs.
Purchase agreement and due diligence
A careful due diligence investigation is essential and includes:
- ✓ legal ownership and chain clauses
- ✓ zoning plan and usage possibilities
- ✓ environmental issues and soil contamination
- ✓ ongoing rental contracts
Warranties and liability
Purchase agreements contain warranties, indemnities and liability limitations. Unclear provisions regularly lead to proceedings.
Practical example
After purchasing business premises, it turns out that part of the property is being used in violation of the zoning plan. The buyer holds the seller liable.