The Agreement of Purchase and Sale is typically prepared by the purchaser; however, the seller ultimately has the right to accept, reject, or counter the offer. Outright rejection is not always advisable, as making appropriate revisions and submitting a counteroffer can often lead to a successful transaction, unless the offer is clearly not worth pursuing.
Reviewing an offer as a seller should mirror the diligence a purchaser exercises when drafting one. Certain criteria must be satisfied, including financing requirements and other legal considerations. Understanding what constitutes a reasonable request is essential when drafting or reviewing any Agreement of Purchase and Sale. Every purchaser has the right to fully understand the nature of the building and leaseholds they are acquiring. Including well-structured and appropriate clauses helps protect the interests of both buyer and seller. While clauses should not be intimidating, they must be clearly understood, along with the potential chain reaction or ‘domino effect’ they may create.