Commercial Property Sale Agreement Template for Australia

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Key Requirements PROMPT example:

Commercial Property Sale Agreement

"I need a Commercial Property Sale Agreement for a multi-tenant office building in Sydney, Australia, with settlement scheduled for March 2025, that includes specific provisions for existing tenancy agreements and environmental compliance requirements."

Document background
The Commercial Property Sale Agreement is a crucial legal document used in Australian commercial real estate transactions to formalize the transfer of commercial property ownership. It is essential when selling or purchasing any type of commercial property, including office buildings, retail spaces, industrial facilities, or mixed-use developments. The agreement encompasses all aspects of the transaction, from initial property description and purchase price to settlement procedures and post-completion obligations. It must comply with Australian federal legislation and state-specific property laws, incorporating necessary provisions for GST, stamp duty, and foreign investment considerations where applicable. This document serves as the primary contract between parties and should be customized to address specific requirements of the commercial property being transferred, including any existing tenancies, development approvals, or environmental considerations.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including full legal names, ACN/ABN for companies, and addresses

2. Background: Sets out the context of the agreement and basic premises, including property ownership and intention to sell/purchase

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 reference, address, and included fixtures/fittings

5. Purchase Price: Specifies the agreed purchase price, deposit amount, and payment terms

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

7. Adjustments: Provisions for adjusting outgoings, rates, taxes and other charges at settlement

8. Title and Transfer: Warranties regarding title, transfer process, and registration requirements

9. Vendor's Obligations: Specifies all obligations of the vendor before, during, and after settlement

10. Purchaser's Obligations: Specifies all obligations of the purchaser before, during, and after settlement

11. Conditions Precedent: Any conditions that must be satisfied before settlement can occur

12. Risk and Insurance: Allocation of risk and insurance requirements until settlement

13. Default and Termination: Consequences of default and circumstances allowing termination

14. GST: GST treatment of the sale and required declarations

15. Notices: Process and requirements for giving notices under the agreement

16. General Provisions: Standard boilerplate provisions including governing law, entire agreement, and severability

17. Execution: Formal execution blocks for all parties

Optional Sections

1. Tenant Provisions: Required when the property is sold subject to existing tenancies, including treatment of bonds and leases

2. Environmental Matters: Required when there are known environmental issues or contamination concerns

3. Development Approvals: Required when the property has pending or current development applications or approvals

4. Plant and Equipment: Required when significant plant, equipment, or machinery is included in the sale

5. Foreign Investment: Required when the purchaser is a foreign person or entity requiring FIRB approval

6. Due Diligence: Required when there is a due diligence period before the contract becomes unconditional

7. Building and Pest: Required when building and pest inspections are conditions of the contract

8. Finance Condition: Required when the purchase is subject to finance approval

9. Management Rights: Required when the property includes management rights or similar business components

Suggested Schedules

1. Property Schedule: Detailed description of land, improvements, and title particulars

2. Included Chattels: Itemized list of chattels included in the sale

3. Disclosure Statement: Statutory and additional disclosures about the property

4. Tenancy Schedule: Details of all current tenancies, including lease terms and rental income

5. Outstanding Orders: List of any outstanding orders or notices affecting the property

6. Warranties: Detailed warranties given by the vendor

7. Essential Safety Measures: Details of safety systems and compliance requirements

8. Service Contracts: List of ongoing service contracts affecting the property

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

10. Settlement Checklist: Documents and requirements for settlement

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

Relevant legal definitions
Relevant Industries

Real Estate

Commercial Property

Legal Services

Banking and Finance

Property Development

Retail

Industrial

Hospitality

Healthcare

Education

Manufacturing

Logistics

Professional Services

Construction

Relevant Teams

Legal

Real Estate

Property Management

Finance

Operations

Compliance

Risk Management

Business Development

Asset Management

Facilities Management

Investment

Development

Due Diligence

Transaction Advisory

Relevant Roles

Property Lawyer

Commercial Real Estate Agent

Property Manager

Chief Financial Officer

Real Estate Director

Commercial Property Consultant

Development Manager

Asset Manager

Investment Manager

Facilities Manager

Legal Counsel

Conveyancing Manager

Property Development Director

Real Estate Transaction Manager

Commercial Property Valuer

Business Development Manager

Risk Manager

Compliance Officer

Operations Manager

Industries
Property Law Act: Core legislation governing real property transactions, including requirements for property transfers, interests in land, and legal formalities for property contracts
Conveyancing Act: Regulates the transfer of property ownership and sets out requirements for property transactions, including documentation and registration procedures
Real Property Act: Establishes the Torrens Title system and regulates land registration and title systems in Australia
Competition and Consumer Act 2010 (Cth): Federal legislation that includes Australian Consumer Law provisions affecting commercial property transactions and fair trading practices
Foreign Acquisitions and Takeovers Act 1975: Regulates foreign investment in Australian real estate, including commercial property purchases
Income Tax Assessment Act 1997: Contains provisions relating to capital gains tax and other tax implications of commercial property transactions
Goods and Services Tax Act 1999: Governs GST implications for commercial property sales and transactions
Environmental Protection and Biodiversity Conservation Act 1999: Federal legislation that may affect commercial property transactions where environmental factors are involved
Planning and Environment Act: State-based legislation governing zoning, land use, and development approvals for commercial properties
Electronic Transactions Act: Governs the use of electronic communications and signatures in property transactions
Duties Act: State-based legislation governing stamp duty and other transaction duties applicable to property sales
Building and Construction Industry Security of Payment Act: Relevant for any outstanding construction or renovation matters that might affect the property sale
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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