Legal Question in Real Estate Law in Georgia

Commercial Real Estate Transaction

I signed a purchase contract on a commercial property with 3 tenants. One of the tenants is the seller.One other tenant had a valid lease contract and third tenant did not. In the advertisement for the sale and subsequent emails to my agent, the seller agent stated the 3rd tenant will ''sign a lease in 30days''. The purchase contract I signed did not contain any contigency for the lease contract. In short, I was unable to get financing for the purchase mainly because the seller will not produce the lease contract. Can I sue the seller agent for misrepresentation or should I sue my agent for professional negligence for not making this a contigency on the purchase contract


Asked on 2/02/08, 6:34 am

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Commercial Real Estate Transaction

You are asking for specific advice on whether, and who, you should sue based on a paragraph. That is beyond the scope of this board. You need to have all of the documents, and all facts, reviewed by a qualified real estate lawyer (not merely a lawyer who solicits any and all types of cases for a fee). The lawyer may also explain why real estate agents are not often charged with protecting all of your legal interests in a transaction. They are not lawyers, and are not held to that standard. The lawyer will also review your contract for a provision that says it is the entire agreement and that you did not rely on any other statements, such as the promise to get the leases. These are matters that are generally negotiated before contracts are signed, and most appropriately by a real estate lawyer.

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Answered on 2/02/08, 6:48 am
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Commercial Real Estate Transaction

If the purchase agreement does not condition the sale on getting a lease with the 3rd tenant, you will have a very hard time trying to sue the seller for breach of contract. With regard to your agent, he/she is not responsible for drafting the agreement; that should have been done by an attorney.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 2/04/08, 2:48 pm


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