When purchasing commercial real estate in Houston, a person or company must go through a process in order to ensure that the transaction is legal and binding. According to the Houston Chronicle, these complex business deals typically require a purchase and sale contract with terms that must be fulfilled to complete the real estate sale. Otherwise, the final agreement may not be binding.
Information about the buyer, the seller, the property and the financing must all be provided in the contract. The American Bar Association explains that the offer and acceptance are also a necessary part of the contract of purchase and sale, and they define the details about the real estate and the purchase price. The seller may look at these and then make a change to the amount of the purchase. This is known as a counteroffer, and it cannot be considered an acceptance unless the buyer subsequently agrees to it.
Both parties have to be qualified to enter into the purchase and sale agreement. Determining the capability or capacity of each party includes verifying his or her authority if representing a company, partnership or trust. An infant or a mentally incompetent person cannot enter into a legally binding contract.
Once all of the steps have been taken to complete the contract, the final agreement is signed. At this point, the terms of the document are legal and binding. However, if a factual error is discovered, there is grounds for termination. When the error is mutual and the parties wish to modify the contract to reflect the correction, this may be done through the court.