Educational institutions don’t build skyscrapers, but that doesn’t mean they never buy or sell commercial real estate. In fact, it’s not at all uncommon for a college or university to be on either end of a commercial real estate purchase and sale agreement (or CRESPA). In this guide, we’ll explain what a CRESPA is and the role it can play in expanding your campus’s infrastructure.
What is a Commercial Real Estate Purchase and Sale Agreement?
As an education professional, you’re likely already well-versed in the commercial real estate lexicon. But just in case you’re reading this guide after you’ve been thrust into the world of CRESPA, let’s take a look at some of the key terminology: These terms are all fairly self explanatory, but as with all legal terms, they can be confusing without context. The core elements of a commercial real estate purchase and sale agreement are the names and roles of the buyer and seller, the information about financing and escrow, legal descriptions of the property in question, obligations incurred both before and after the transaction, and information about contingencies, breach of contract, liabilities, warranties and provisions, remedies, representations, and disclosures.
How Can a Commercial Real Estate Purchase and Sale Agreement Expand Your Campus’s Infrastructure?
If your educational institution is large enough to warrant buying or selling commercial real estate, then you already have a fairly comprehensive idea about your financial and logistical capabilities. Still, a CREPSA can help by spelling out both the obvious and more subtle financing details associated with a commercial real estate purchase or sale. For example: Even though you know all of this already, it’s easy to overlook any number of these details when you’re not actively involved in evaluating a specific real estate property. A CREPSA, however, meets this task head on, assuring you that you’ve covered everything you need to with regard to financing.
Key Terms Explained
Although you likely aren’t responsible for the legal minutiae of your educational institution or organization’s commercial real estate purchase or sale, it’s good to have a basic understanding of some of the more common terms used in CRESPAs. Consider the following: At this point, you might be wondering how this all relates to college life, and what kind of impact it can have on life on campus, so to speak. Well, beyond the considerable real estate-financing information outlined above, it’s important to remember that a CREPSA could result in funds or financing to expand your buildings, housing, food, and recreational facilities. It could also limit your liability, allowing you or your financial backers to move forward without concern or hassle down the road. In this way, commercial real estate purchase and sale agreements for educational institutions can have a tremendous impact on the lives of the students who fill your halls. Ultimately, the most important aspect of this is effective negotiation and collaboration with legal experts who know the ins and outs of the world of commercial real estate.
Potential Issues and Concerns
In the infrequent event that a land sale, service agreement, or other detail has not been properly anticipated, arrayed, and taken into consideration by your CREPSA, there can be significant issues and concerns that arise. These include the following: How are these issues best avoided? With the counsel and guidance of a legal expert who specializes in real estate, and who has seen virtually every scenario unfold.
Conclusion
Although your personal experience with commercial real estate purchase and sale agreements may be limited, it’s sensible to consult the guide to commercial real estate purchase and sale agreements. This comprehensive guide to commercial real estate purchase and sale agreements will provide you with the information you need to manage your real estate needs effectively.
How can a Lawyer Help? Hiring a lawyer is one of the best ways to make sure you won’t run into problems down the line. Building an educational institution is an enormous investment, and anything that comes between you and a completed building, including legal issues, will have a negative impact on you. The best solution is to have everything lined up, including all your legal bases.
For more information on real estate agreements, you can visit Wikipedia.
