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Commercial Real Estate Agreement for Australia

Commercial Real Estate Agreement Template for Australia

A comprehensive legal document governed by Australian law that facilitates the sale and purchase of commercial real estate properties. This agreement outlines all essential aspects of the transaction, including property details, purchase price, settlement terms, warranties, and obligations of all parties involved. It incorporates relevant state-specific property legislation and federal requirements, ensuring compliance with Australian property law, consumer protection regulations, and tax implications. The document serves as the primary binding agreement between the vendor and purchaser, establishing their rights and responsibilities throughout the transaction process.

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What is a Commercial Real Estate Agreement?

The Commercial Real Estate Agreement is a crucial legal document used in Australian property transactions when transferring ownership of commercial properties between parties. This agreement is essential for any business property sale, whether it's an office building, retail space, industrial facility, or mixed-use development. It must comply with both federal Australian legislation and state-specific property laws, incorporating elements such as GST considerations, foreign investment regulations where applicable, and state-specific transfer requirements. The document typically includes comprehensive details about the property, financial terms, due diligence requirements, warranties, and settlement procedures. It serves as the primary reference point for all aspects of the transaction, protecting both parties' interests and ensuring legal compliance throughout the sale process.

What sections should be included in a Commercial Real Estate Agreement?

1. Parties: Identifies and defines all parties to the agreement, including their legal status, ABN/ACN, and contact details

2. Background: Provides context for the agreement, including property details and purpose of the transaction

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpretation

4. Property Details: Comprehensive description of the property, including lot number, title details, and included fixtures/fittings

5. Purchase Price and Payment Terms: Specifies the purchase price, deposit requirements, and payment structure

6. Settlement: Details the settlement process, timing, and requirements for completion

7. Due Diligence: Outlines the buyer's rights and timeframes for property investigation and condition verification

8. Warranties and Representations: Lists warranties provided by both parties regarding the property and transaction

9. Title and Transfer: Addresses requirements for clear title and the transfer process

10. Risk and Insurance: Specifies when risk passes to the buyer and insurance requirements

11. Default and Termination: Details what constitutes default and consequences of breach

12. Goods and Services Tax: Addresses GST treatment of the transaction

13. Costs and Stamp Duty: Allocates responsibility for transaction costs and stamp duty

14. Notices: Specifies how formal notices must be given between parties

15. General Provisions: Includes standard boilerplate clauses like governing law, entire agreement, and severability

16. Execution: Formal signing section including attestation requirements

What sections are optional to include in a Commercial Real Estate Agreement?

1. Environmental Matters: Required when the property has known environmental issues or contamination risks

2. Development Rights: Included when the property has development potential or existing development approvals

3. Tenant Rights and Obligations: Required when the property is sold subject to existing tenancies

4. Foreign Investment Approval: Required when the buyer is a foreign person or entity requiring FIRB approval

5. Special Conditions: Used for unique requirements specific to the transaction or property

6. Property Management: Included when ongoing management arrangements are part of the transaction

7. Finance Conditions: Required when the purchase is subject to finance approval

8. Building and Pest Inspection: Optional condition for buyer's right to conduct specific inspections

9. Subdivision Requirements: Required when the transaction involves land subdivision

10. Heritage Requirements: Included when the property has heritage listings or restrictions

What schedules should be included in a Commercial Real Estate Agreement?

1. Property Schedule: Detailed property description including title particulars, encumbrances, and easements

2. Purchase Price Schedule: Breakdown of purchase price, including any adjustments and apportionments

3. Disclosure Schedule: Vendor disclosures about the property's condition and known issues

4. Existing Tenancies Schedule: Details of current lease agreements and tenant arrangements

5. Inclusions and Exclusions: Itemized list of fixtures, fittings, and equipment included/excluded from sale

6. Due Diligence Checklist: List of documents and information to be provided during due diligence

7. Settlement Requirements: Detailed checklist of items required for settlement

8. Property Certificate: Current title search and registered encumbrances

9. Building Compliance Documents: Certificates of compliance, occupancy permits, and building approvals

10. Environmental Reports: Any environmental assessments or contamination reports

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions





















































Clauses






































Relevant Industries

Real Estate

Commercial Property

Retail

Industrial

Office Space

Hospitality

Healthcare

Education

Logistics

Manufacturing

Professional Services

Banking and Finance

Legal Services

Construction

Property Development

Relevant Teams

Legal

Real Estate

Property Management

Finance

Compliance

Risk Management

Operations

Business Development

Facilities Management

Asset Management

Investment

Corporate Services

Relevant Roles

Property Lawyer

Commercial Real Estate Agent

Property Manager

Business Development Manager

Commercial Property Valuer

Real Estate Investment Manager

Facilities Manager

Corporate Counsel

Legal Counsel

Chief Financial Officer

Real Estate Portfolio Manager

Asset Manager

Property Development Manager

Transaction Manager

Risk Manager

Compliance Officer

Real Estate Finance Manager

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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