Page 130 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

leave a deal for any reason whatsoever. In that case, why should you
need to add additional weasel clauses?

Purchase and Sale Agreement

After the LOI is signed by both parties, the next step is to create the
Purchase and Sale Agreement , or P & S .
I have no problem having the seller draft the P & S. This saves me
money, because my attorney needs only to review the draft and make
any changes that he sees fit. If my attorney drafts the P & S, I ’ m now

paying more for the entire document, but gaining no more protection.
Do not follow the advice in some investor courses, which hand
you a do - it - yourself P & S. The theory is you only add the clauses that
relate to your situation, and can now save all your money by avoiding
attorney involvement.
It ’ s the difference between my approach (saving money) and their
approach (being cheap and dumb).
Every state has slightly different laws and interpretations. No sin-
gle contract could ever effectively maximize your protection in every
state, for every deal. Pay the bucks for an attorney who specializes in
real estate investing, and let her do her job.

Hazardous Waste

In every one of your commercial contracts, you should have a hazardous
waste clause. It should basically state that the seller has no knowledge
of any hazardous waste on the property. This includes underground
oil tanks, toxic mold, asbestos, buried asphalt shingles, and so on.
Buyers of commercial real estate are not protected by standard
consumer protection laws. You must insist that the seller be clear — in
writing — about what he knows or doesn ’ t know concerning hazardous
waste. Either the seller acknowledges that he knows of no hazards on
the property, or you want to be informed of them prior to closing.
The lender will require that you do a Phase One Environmental
Inspection . This covers all known forms of hazardous waste. Get a Phase

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