2. Are there standard representations and warranties included inall commercial contracts?
No, Representations and warranties are always a matter for
negotiation.
There are many commercial real estate contracts that say, in
effect: "The property is being sold ‘as is.’ Seller makes no
representations or warranties."
When a seller is making representations and warranties, the
seller’s lawyer may insist on adding the cautionary words, " . .
. to the best of seller’s knowledge."
That way, the seller is not guaranteeing unknown facts or
conditions.
If you are buying income-producing property, your lawyer may want
the seller to guarantee the accuracy of the rental income figures
as well as the expenses the seller has represented to you.
You may also want the sales contract to include a statement that
the seller is aware of no hidden defects in the building – that
is, defects that your inspector is unlikely to discover.
