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Commercial Property Sale Contract Template for Canada

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Key Requirements PROMPT example:

Commercial Property Sale Contract

"I need a Commercial Property Sale Contract for the purchase of a multi-tenant office building in Toronto, with specific provisions for existing tenant leases and environmental compliance requirements, closing planned for March 2025."

Document background
The Commercial Property Sale Contract is a crucial legal instrument used in Canadian real estate transactions for the transfer of commercial property ownership. This document is essential when businesses or individuals are engaging in the purchase or sale of commercial real estate assets in Canada, whether they be office buildings, retail spaces, industrial facilities, or other commercial properties. The contract must comply with both federal and provincial legislation, including property law, tax regulations, environmental standards, and anti-money laundering requirements. It contains comprehensive provisions covering property description, purchase price, due diligence requirements, representations and warranties, closing conditions, and risk allocation. The document is particularly important as it provides legal protection for all parties involved and ensures that the transaction meets all regulatory requirements while addressing specific commercial property considerations.
Suggested Sections

1. Parties: Identification of the vendor and purchaser, including full legal names and registered addresses

2. Background: Context of the transaction and brief description of the property being sold

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed legal description of the property, including municipal address and legal boundaries

5. Purchase Price: Statement of the purchase price and payment terms, including deposit requirements

6. Due Diligence: Buyer's rights and timeframes for property inspection, document review, and satisfaction of conditions

7. Representations and Warranties: Vendor's declarations regarding property condition, title, and other material facts

8. Closing Conditions: Conditions that must be satisfied before the transaction can close

9. Closing Procedures: Details of the closing process, including documentation requirements and timing

10. Adjustments: Provisions for adjusting taxes, utilities, rents, and other expenses as of closing

11. Title: Requirements for clear title and addressing any title defects

12. Risk: Allocation of risk and responsibility for the property before closing

13. Default: Consequences of default by either party

14. Notices: How and where formal notices under the agreement must be delivered

15. General Provisions: Standard contract clauses including governing law, entire agreement, and amendments

Optional Sections

1. Environmental Matters: Specific provisions regarding environmental investigations and liabilities, used when environmental concerns exist

2. Tenant Rights: Provisions dealing with existing tenants and leases, used when property is leased

3. Property Management: Transition of property management responsibilities, used for properties with ongoing management needs

4. Development Rights: Transfer of development rights or permits, used when property has pending or approved development plans

5. Heritage Requirements: Special conditions for heritage properties, used when property has historical designation

6. Vendor Financing: Terms of any vendor financing arrangements, used when vendor provides financing

7. GST/HST Certificate: Special GST/HST provisions, used when applicable to the transaction

8. Construction Completion: Provisions for incomplete construction or renovations, used for properties under development

Suggested Schedules

1. Schedule A - Legal Description: Detailed legal description of the property and included fixtures

2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, and encumbrances

3. Schedule C - Leases: Details of existing leases and tenant arrangements

4. Schedule D - Service Contracts: List of transferable service contracts and maintenance agreements

5. Schedule E - Deliveries: List of documents and items to be delivered on closing

6. Schedule F - Environmental Reports: Environmental assessment reports and related documentation

7. Schedule G - Property Condition Report: Current condition report including photographs and inspection results

8. Appendix 1 - Site Plan: Detailed plan showing property boundaries and structures

9. Appendix 2 - Financial Statements: Operating statements and financial records for income-producing properties

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































Clauses




































Relevant Industries

Real Estate

Commercial Property Development

Retail

Manufacturing

Hospitality

Healthcare

Education

Financial Services

Logistics and Warehousing

Office Space Management

Industrial

Technology

Entertainment and Recreation

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Facilities Management

Business Development

Operations

Property Management

Asset Management

Investment

Corporate Development

Relevant Roles

Real Estate Attorney

Property Manager

Commercial Real Estate Agent

Business Development Manager

Chief Financial Officer

Real Estate Investment Manager

Facilities Manager

Corporate Counsel

Risk Management Officer

Asset Manager

Acquisition Manager

Development Director

Property Developer

Real Estate Portfolio Manager

Compliance Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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