Commercial property purchase agreement

1 Reply

Hi everyone,

Starting work on a deal wholesaling a commercial property in Texas. Should I be using a particular P&A or will one for residential be legally correct? It's an R.V. park, flat dirt, no buildings. 

Much appreciate it,

Nicole

You can use a simple one page contract but you'll be much better off using a commercial contract or one specifically written for RV and/or Mobile Home Parks.  The biggest thing to cover is the due diligence items and LOTS of wiggle room for you to back out as they buyer if something is discovered in the due diligence period.  When I wholesale RV & MHP parks I want as much leeway as possible when I sign with the Seller but when I go to Assign the Contract to the third party I want to make absolutely sure they are locked in with non-refundable payment upfront and the balance due at Closing.  Further, if they back out for any reason once they sign the Assignment, you need a way to get the contract back in your name so you have a chance to resell it.

Stay with the transaction all the way through closing.  I now help my buyers with Due Diligence, the loan and closing process so I'm positive they will Close.