Once you find a commercial property that you’d like to purchase, one of the first things you’ll do is put money into escrow. You do this to show that you’re interested in the property and serious about purchasing it. After this, you’ll do your due diligence to make sure the property is everything you expected it would be.
Following this, you’ll need to discuss the title with your attorney. The title should be clear. If it isn’t, you may want to talk to your attorney about options for having the title cleared or moving on to a new property search.
Other important steps include reviewing a survey that should show all existing structures and other improvements, plus matters like easements. For some kinds of properties, you may also need to order environmental testing, in addition to a regular property inspection. Commercial property also frequently involves active leases that will be assigned to the buyer; your attorney needs too talk to you about what rights and risks you may have as the new landlord. These steps usually occur during the part of the process called “due diligence.” You will want to discuss with your attorney the exact parameters of the due diligence period and what the requirements might be to cancel the contract if you aren’t happy with what your review of the property revealed.
It’s only after all of this is finished that you’ll move on to closing on the property. During a closing, you go over the contract with the seller, review closing documents and sign them to agree to the property transfer.
Do you need an attorney to close on a property in Florida?
You should work with a real estate attorney when closing on a property in Florida. While it’s not mandatory to have an attorney work with you, having one to help you go over contracts and protect your rights is a smart move. Your attorney will be there to make sure the closing goes smoothly and hasn’t been finalized while overlooking other important factors.
Your attorney will also be sure to help you prepare the correct documents for the commercial real estate closing, so you have all you need when it takes place.
Since a piece of real estate is one of the largest purchases that you’ll make, it’s a good idea to have someone on your side to make sure that the real estate transaction goes smoothly. Commercial real estate closings are more complex than residential closings, so you can expect the documentation to be more intensive and to need to be more detailed than you would in a noncommercial setting.
It’s not a good idea to leave the transaction to chance. Even one or two smaller errors could end up costing you money or causing you trouble in the future. Your attorney will be there to make sure those issues don’t come up and to handle them if they do.
