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PLAYBOOK TEMPLATES
Real Estate Purchase Agreement
A Real Estate Purchase Agreement governs the sale and transfer of property ownership between buyer and seller. This playbook covers due diligence, contingencies, and closing mechanics.
Environmental Risk Allocation
Negotiation strategy
Ensure comprehensive environmental due diligence is conducted before closing. Negotiate for the Seller to cover pre-existing contamination costs and secure indemnities against third-party claims.
Limit liability by clearly defining the scope of pre-existing contamination. Ensure the Buyer assumes responsibility for any new contamination discovered post-closing.
Essential elements
1
Due Diligence Requirement
Mandate environmental assessments.
2
Pre-Existing Contamination
Seller's responsibility for prior issues.
3
Remediation Standards
Compliance with environmental laws.
Action framework
ACCEPT
Propose edits if due diligence scope is insufficient or remediation standards are vague.
EDIT
Reject clauses that unfairly allocate all risks to one party.
ADD
Add indemnity clauses for third-party claims and jurisdiction-specific requirements.
PRO TIP
Always consult with environmental experts to tailor clauses to specific property risks and jurisdictional laws.
Real-world examples
FAVORABLE
Comprehensive Due Diligence Clause
"The Parties shall conduct comprehensive environmental due diligence prior to the execution of this Agreement, including Phase I and II assessments."
NEUTRAL
Basic Remediation Clause
"Remediation shall comply with applicable laws and standards."
UNFAVORABLE
Unclear Liability Allocation
"The Buyer and Seller shall mutually agree on remediation responsibilities post-closing."
Alternative scenarios & positions
High-Risk Projects
For properties with known contamination, require detailed risk assessments and consider environmental insurance or escrow for remediation costs.
Jurisdiction-Specific Compliance
Tailor clauses to meet local environmental regulations, consulting with local counsel as needed.
Post-Closing Discoveries
Establish clear protocols for addressing contamination discovered after closing, including cost-sharing mechanisms.
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