Commercial Real Estate Purchase Agreement

Commercial Real Estate Purchase Agreement Template for Denmark

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Document background

The Commercial Real Estate Purchase Agreement is a crucial legal document used in Denmark for transferring ownership of commercial properties. It is essential when any business entity wishes to purchase commercial real estate, whether for operational use, investment, or development purposes. The agreement must comply with Danish property law, including the Tinglysningsloven and related regulations, and typically includes comprehensive provisions covering property description, purchase price, due diligence requirements, warranties, and completion procedures. This document is particularly important as it provides legal certainty for high-value transactions and ensures all aspects of the property transfer are properly documented and legally enforceable under Danish law. It should be customized based on the specific property type, intended use, and any special conditions agreed between the parties.

Suggested Sections

1. Parties: Identification of the seller and purchaser with full legal names, registration numbers, and addresses

2. Background: Context of the transaction and brief description of the property being sold

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the property including address, land registry details, and cadastral numbers

5. Purchase Price: Specification of the purchase price, payment terms, and deposit requirements

6. Due Diligence: Buyer's right to conduct investigations and the scope of due diligence

7. Conditions Precedent: Conditions that must be satisfied before completion of the purchase

8. Seller's Warranties: Warranties given by the seller regarding the property's condition, title, and compliance

9. Completion: Mechanics of completion, including timing, documentation, and registration requirements

10. Transfer of Risk: Timing and conditions for transfer of risk and insurance obligations

11. Tax Matters: Treatment of property taxes, transfer taxes, and other tax obligations

12. Costs: Allocation of transaction costs between parties

13. Notices: Process for giving formal notices under the agreement

14. Governing Law and Jurisdiction: Confirmation of Danish law as governing law and jurisdiction for disputes

15. Execution: Signature blocks and execution requirements

Optional Sections

1. Existing Tenancies: Details of existing lease agreements and treatment of tenant deposits - include when property has current tenants

2. Financing Conditions: Specific conditions related to purchaser's financing - include when purchase is contingent on financing

3. Environmental Matters: Specific provisions regarding known environmental issues - include when property has environmental concerns

4. Development Rights: Provisions regarding development potential and permits - include when property has development potential

5. Service Contracts: Treatment of existing service contracts - include when property has ongoing service agreements

6. Asset Transfer: Transfer of fixtures, fittings, and equipment - include when sale includes significant movable assets

7. Post-Completion Obligations: Specific obligations after completion - include when there are post-completion requirements

8. Broker Provisions: Terms regarding real estate broker involvement - include when brokers are involved

Suggested Schedules

1. Property Description Schedule: Detailed technical description of the property, including maps and plans

2. Title Documents: List of all title documents and registered encumbrances

3. Existing Leases: Copies and summaries of all existing lease agreements

4. Service Contracts: List and copies of all service contracts affecting the property

5. Property Condition Report: Technical assessment of property condition

6. Environmental Reports: Environmental surveys and assessments

7. Planning Permissions: Copies of relevant planning permissions and certificates

8. Energy Performance Certificate: Mandatory energy performance documentation

9. Property Charges: Details of property taxes and other recurring charges

10. Form of Transfer Deed: Template for the property transfer deed (skøde)

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