The operation of a business or a corporation is often tied to the use of a specific building.
If the real estate belongs to the business owner or the corporation, it must be determined whether the real estate is being sold as part of the same contract for the sale of assets or shares, or through a separate sales contract. A thorough review of the title to the building will then be conducted as part of the sale agreement, which will contain all the required representations and warranties from the seller regarding the building. It may also be decided that the property will remain the seller’s property and will be leased to the new operator of the business or corporation, in which case a lease must be arranged.
If the building housing the business or corporation does not belong to the seller, it will be necessary to confirm with the owner that the commercial lease can be assigned to the buyer under the same terms, or otherwise renegotiated on favorable terms.