Are you ready to purchase a commercial property? Maybe you’re getting ready to buy a property that you’ll rent out to tenants or are buying one for your own business. Whatever you plan to do, it’s important that your purchase and closing go well.
There are high costs associated with buying a commercial property, so it’s reasonable to want to make sure that every aspect of this purchase goes as it should. You’ll want to have your attorney present to double-check the contracts involved and be sure that you are protected when you finalize the purchase. Failing to check a title or tax information could come back to haunt you, so it’s better to be cautious in that regard.
Complexity makes commercial real estate closings more difficult
Did you know that commercial real estate closings are more complex than residential? As a result, they take longer and have more room for error. Each and every document you handle should be detailed and filled out correctly. Even one or two small mistakes could significantly impact your purchase.
Some things that your attorney will need to help before and during closing include:
- Getting an appraisal of the property
- Completing survey requirements
- Reviewing loan documents
- Reviewing closing documents
- Finalizing and reviewing environmental reports, when needed
- Obtaining financing for the purchase
- Reviewing existing leases and rent roll
- Preparing an adequate assignment of the existing leases and tenant estoppel letters
- Reviewing any contract documents provided throughout the process of your purchase
- Checking and issuing titles
From the start of your purchase until closing, it’s smart to have your attorney working closely with you. Since this purchase is so large and costly, having the same attorney helps you to be sure that they understand what you’ve done or not done during the purchasing process in preparation for the closing.
Why is it important to work with a commercial real estate attorney?
A good real estate closing attorney will help you avoid mistakes that could harm you in the future, like problems with the title or taxes on the property. Doing your due diligence will mean that you can rest easy knowing that your transaction was completed by the books and is legally binding.