Is a seller subject to the same disclosure rules in commercial sales?
Not necessarily. The law of disclosure in real estate sales at the commercial level is not augmented by the special rules provided for residential sales of fewer than four units. A commercial buyer is presumed to be a sophisticated investor, with the capacity to know and understand the value of a property and is able to protect him or herself in a purchase from a commercial seller. Often, unlike in residential sales, a sale of a commercial property is “as is,” meaning the buyer assumes the risk of all defects when escrow closes. The difference in a commercial setting is often the scale of the transaction. For example, at the writing of this page, the average home in suburban San Diego County may be sold for $650,000-$750,000.00. That is a lot of money, but not nearly as much as a commercial property would bring. A small office building with several offices in it may command $1.5-$5M, depending on its location. A buyer and the lender he or she elects to finance the transaction, will dem
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