A Look Behind The Scenes

Preparing to Close Commercial Buy

What do I need to know about before we close on the buy of a commercial property?

The closing process of buying commercial property is similar to the closing process of buying a home, but there are a few key differences.

Here is a step-by-step overview of the commercial property closing process:

  • Review and sign the purchase and sale agreement. This agreement outlines all of the terms of the sale, including the price of the property, the closing date, and any contingencies.
  • Obtain financing. If you are not paying for the property in cash, you will need to obtain financing from a lender. This process can take several weeks, so it is important to start early.
  • Order a title report. A title report is a document that shows who owns the property and whether there are any liens or encumbrances on the title.
  • Negotiate any title issues. If the title report reveals any title issues, you will need to negotiate with the seller to resolve them before closing.
  • Sign the closing documents. The closing documents are the legal documents that transfer ownership of the property from the seller to you. You will sign these documents in the presence of a notary public.
  • Pay the closing costs. Closing costs are the fees associated with the sale of the property, such as title insurance, appraisal fees, and attorney fees.
  • Receive the keys to the property. Once all of the closing documents have been signed and the closing costs have been paid, you will receive the keys to the property.

Addition things to know when closing on a commercial property

Here are some additional things to keep in mind about the commercial property closing process:

Commercial property closings can be complex and time-consuming, so it is important to work with an experienced commercial real estate attorney. The closing costs associated with commercial property sales are typically higher than the closing costs associated with home sales. There are a number of different types of commercial property loans available, so it is important to compare terms and rates from multiple lenders before choosing a loan.

Here are some tips for ensuring a smooth closing process:

  • Start the closing process early. This will give you plenty of time to obtain financing, order a title report, and negotiate any title issues.
  • Be prepared to pay the closing costs. Closing costs can be significant, so it is important to budget for them.
  • Work with an experienced commercial real estate attorney. A good attorney can help you understand the closing process and protect your interests.

By following these tips, you can help to ensure a smooth and successful closing for your commercial property purchase.
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