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.
Why This Matters: Unclear or unfair payment terms can strain cash flow and create breach risk. Defined obligations protect against hidden fees and disputes over late or partial payments.
Negotiation strategy
If you're the Buyer:
Negotiate for a fixed base rent with minimal escalation. Ensure payment methods are convenient and secure, and seek clarity on any additional charges.
If you're the Seller:
Ensure rent escalation clauses are clear and justified. Require electronic payments to streamline processing and reduce late payments.
Essential elements
1
Base Rent
Monthly rent payable in advance.
2
Rent Escalation
Annual increase in base rent.
3
Payment Schedule
Due dates for rent payments.
Action framework
ACCEPT
Propose edits if escalation percentages are too high or payment methods are inconvenient.
EDIT
Reject clauses that allow unilateral changes to rent terms.
ADD
Add clauses for allowable deductions and transparency in billing.
PRO TIP
Always review market standards for rent escalation to ensure competitiveness.
Example clauses
FAVORABLE
Clear Base Rent Clause
"The Tenant shall pay to the Landlord a base rent of [insert amount] per month, payable in advance on the first day of each calendar month during the term of this Lease."
NEUTRAL
Standard Rent Escalation
"The base rent shall be subject to an annual escalation of [insert percentage] percent, commencing on the first anniversary of the Lease Commencement Date and continuing on each subsequent anniversary thereof."
UNFAVORABLE
Ambiguous Payment Terms
"Rent payments shall be due at a time agreed upon by both parties without a specified schedule."
Fallbacks
High-Risk Projects
In high-risk projects, ensure rent terms are flexible to accommodate potential delays or changes in project scope.
Short-Term Leases
For short-term leases, negotiate for fixed rent without escalation to maintain cost predictability.
Shared Spaces
In shared spaces, clarify the allocation of common area charges to avoid disputes over shared costs.
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WEEK 1
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WEEK 2
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WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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