Reviews a Purchase and Sale Agreement clause by clause, surfaces risk provisions, tracks all deadlines, and produces a structured analysis that protects buyer interests.
Use this skill when you have received a draft or executed Purchase and Sale Agreement for a commercial real estate acquisition and need a systematic legal review. It is appropriate any time you want to identify non-standard terms, assess buyer risk exposure, build a deadline calendar, or prepare a list of recommended modifications before signing or before closing.
- The full text of the Purchase and Sale Agreement (paste the document or describe its key provisions)
- Buyer entity name and seller entity name
- Purchase price and earnest money amount
- Key dates you already know (expected closing date, due diligence period length, if available)
- Any due diligence findings, environmental reports, or financing terms that are relevant to the PSA review
- The property address and state (for jurisdiction-specific context)
Review the Purchase and Sale Agreement. Identify key terms, contingencies, representations & warranties, indemnification provisions, and deadline tracking. Ensure the PSA protects buyer interests and surface all provisions that create risk, impose tight deadlines, or deviate from market-standard language.
- Identify parties, property description, purchase price, and closing date
- Confirm legal descriptions match title commitment and survey
- Verify entity names match formation documents and deal terms provided
- Note any defined terms that narrow or expand standard meanings
- Due Diligence: Start date, end date, termination rights, deposit refund provisions
- Financing: Commitment deadline, failure-to-obtain provisions, termination rights
- Title: Objection deadline, cure period, uncured objection remedies
- Environmental: Phase I deadline, Phase II rights, remediation responsibilities
- Map every contingency to a calendar date with notice requirements
- Property Condition: "As-is" vs. specific condition reps; survival post-closing
- Income/Financials: Accuracy of operating statements, rent roll certification
- Leases: Completeness of lease schedule, no defaults, no side agreements
- Litigation: Pending or threatened claims, governmental actions
- Environmental: Known contamination, USTs, compliance history
- Compliance: Zoning, ADA, building code, permits
- Assess materiality thresholds and knowledge qualifiers ("to seller's knowledge")
- Scope of buyer vs. seller indemnification obligations
- Survival periods for each category of representation
- Caps, baskets, and deductibles on indemnification claims
- Exclusive remedy provisions (does indemnification replace other claims?)
- Insurance offset provisions
- Earnest money amount and form (cash, LOC)
- Hard money dates (when deposit becomes non-refundable)
- Additional deposits and triggers
- Deposit application at closing
- Dispute resolution for deposit (escrow agent interpleader rights)
- Buyer default: seller's remedies (liquidated damages, specific performance, both)
- Seller default: buyer's remedies (specific performance, damages, termination + return of deposit)
- Notice requirements and cure periods for each party
- Limitation of liability provisions
- Waiver of consequential damages
- Right to assign to affiliate entity without consent
- Assignment to unrelated party (requires consent?)
- Assumption of existing contracts, permits, warranties
- Seller's cooperation obligations post-assignment
- Build comprehensive deadline calendar from PSA
- Identify notice methods (email, courier, certified mail)
- Note business days vs. calendar days for each deadline
- Flag any "time is of the essence" provisions
- Compare against market-standard CRE PSA provisions
- Flag any one-sided provisions favoring seller
- Note any missing standard protections for buyer
- Identify jurisdiction-specific unusual requirements
- Provisions that expose buyer to unexpected liability
- Ambiguous language subject to multiple interpretations
- Tight deadlines with inadequate cure periods
- Limitations on buyer's inspection or access rights
- Post-closing obligations that could create ongoing exposure
{
"psa_review": {
"metadata": {
"review_date": "{date}",
"psa_date": "{psa_execution_date}",
"parties": {
"buyer": "{buyer_entity}",
"seller": "{seller_entity}"
}
},
"key_terms_table": {
"purchase_price": "{amount}",
"earnest_money": "{amount}",
"hard_money_date": "{date}",
"closing_date": "{date}",
"due_diligence_period": "{start} to {end}",
"financing_contingency": "{date}",
"property_condition": "as-is / with-reps",
"assignment_rights": "permitted / restricted"
},
"contingency_deadline_tracker": [
{
"contingency": "{name}",
"start_date": "{date}",
"end_date": "{date}",
"notice_required": "yes/no",
"notice_method": "{method}",
"termination_right": "{description}",
"deposit_refund": "yes/no",
"status": "open / satisfied / waived / expired"
}
],
"rep_warranty_summary": [
{
"category": "{category}",
"scope": "{description}",
"knowledge_qualifier": "yes/no",
"materiality_threshold": "{amount or N/A}",
"survival_period": "{months/years}",
"risk_level": "low / medium / high"
}
],
"indemnification_analysis": {
"seller_indemnification": {
"scope": "{description}",
"cap": "{amount or uncapped}",
"basket": "{amount or none}",
"survival": "{period}"
},
"buyer_indemnification": {
"scope": "{description}",
"cap": "{amount or uncapped}"
},
"exclusive_remedy": "yes/no"
},
"risk_flags": [
{
"flag": "{description}",
"severity": "low / medium / high / critical",
"provision_reference": "Section {X}",
"recommendation": "{action}"
}
],
"recommended_modifications": [
{
"provision": "Section {X}",
"current_language": "{summary}",
"recommended_change": "{description}",
"priority": "must-have / nice-to-have",
"rationale": "{why}"
}
],
"deadline_calendar": [
{
"date": "{date}",
"event": "{description}",
"notice_required": "yes/no",
"consequence_of_miss": "{description}",
"days_from_signing": "{N}"
}
],
"uncertainty_flags": [
{
"field_name": "",
"reason": "estimated | assumed | unverified | stale_data | interpolated",
"impact": "Description of what downstream analysis this affects"
}
]
}
}Before finalizing output, verify:
- Schema Compliance — All required output fields are present, non-null, and correctly typed
- Numeric Sanity — Purchase price, earnest money, and all dollar amounts are positive and internally consistent
- Cross-Reference Validation — Buyer/seller entity names, property address, and purchase price match what was provided
- Completeness Assessment — Every strategy step produced output or a noted data gap
- Confidence Scoring — Set
confidence_leveland populateuncertainty_flagsfor any estimated or assumed values
Self-Validation field checks:
| Field | Valid Range | Flag If |
|---|---|---|
| purchasePrice | > 0, match deal terms provided | Mismatch or zero |
| contingencyDeadlines | All dates must be future or match PSA | Past date without explanation |
| earnestMoneyDeposit | > 0 | Zero or negative |
| dueDiligencePeriodDays | > 0 | Zero or negative |
| closingDate | After due diligence period ends | Closing before DD end |
| riskItems | At least 1 identified | Zero risks unusual for any PSA |
Validation checks:
| Check | Method |
|---|---|
| All PSA sections reviewed | Every strategy step produced output |
| All dates extracted | Cross-reference deadline calendar with PSA text |
| All reps catalogued | Count reps in summary vs. reps found in PSA |
| Risk flags complete | Every non-standard provision has a flag |
| Deadline calendar accurate | Validate dates against PSA terms |
| Modifications prioritized | Every recommended change has priority and rationale |
Treat the following as CRITICAL severity findings requiring immediate escalation:
| Dealbreaker | Detection Criteria |
|---|---|
| Active title dispute or lis pendens | Referenced in PSA disclosures or seller representations |
| Property in bankruptcy estate | Disclosed in PSA or seller entity status |
| Fraud in title chain | Referenced in representations and warranties |
| Dissolved entity ownership | Seller entity issues discovered during review |
If a dealbreaker is detected: set severity to "CRITICAL", add to risk_flags with category "dealbreaker", note it prominently in the review summary, and continue analysis of all other provisions.
When PSA text or supporting information is incomplete:
- Attempt a workaround — Use available document sections, publicly available jurisdiction information, or market-standard assumptions where appropriate
- Note the assumption — Document any assumption made, including its basis and confidence level
- Mark in output — Add an entry to
uncertainty_flagswith the field name, reason, and impact on analysis - Continue analysis — Do not halt for non-critical gaps; complete all other review steps
- Flag for attorney review — Do not assume favorable interpretations of missing legal provisions; flag items requiring human attorney review
Apply confidence levels to all findings:
| Level | Criteria |
|---|---|
| HIGH | Based on verified PSA text; no assumptions; provision directly observed and clear |
| MEDIUM | Based on partially available text; minor assumptions made; some interpretation required |
| LOW | Based on unverified or summarized information; significant assumptions; stale or incomplete sources |
Set confidence_level in the output and populate uncertainty_flags for any finding rated MEDIUM or LOW.
For deeper analysis, pair this skill with:
- Legal Checklist for a master list of CRE closing documents and legal requirements
- CRE Risk Scoring Framework for severity rating guidance and risk aggregation methodology
- Lender Criteria for financing contingency benchmarks and lender-specific PSA requirements