Broward County Commercial Closings
Fort Lauderdale Lawyers For Commercial Closings
When you are buying or selling commercial real estate, the process is a little different from that of a residential property. Commercial closings will generally have more people involved and can take longer to finalize since the due diligence process is different for commercial real estate. Typically, the closing process for a commercial property takes between 30 and 45 days. This is because more time is needed for inspections of the commercial property as well as obtaining legal clearances before any funds can be exchanged from one party to another.
A commercial real estate closing requires specialized inspections, and an income & expense analysis for the property has to be completed. Lending for commercial real estate purchases is also guided by different standards than those that apply to residential properties.
Many commercial properties are purchased specifically for the reason that they have tenants who are paying to be there, adding another level of complexity to the closing. Leases between the Seller and their Tenants needs to be reviewed and properly assigned to the buyer. If there are any tenants not paying bills, hold-over tenants, or tenants who just do not return phone calls, those tenants will need to be notified and evicted from the building.
When purchasing a commercial property, vacant or not, those involved in the transaction want to close quickly and efficiently. At Magnolia Law, we do both while helping our clients with the complicated process of a commercial real estate closing.
Steps For A Successful Commercial Closings
Every detail matters in a commercial closing. Below are 5 important things to keep in mind when closing on a commercial property.
Your plan and the purchase agreement must address any issues and the solutions should be included as part of the closing requirements.
You must be ready for issues that may arise during your commercial closing. You must understand and resolve these issues in a timely manner. An experienced commercial real estate lawyer can often overcome certain title obstacles through creative and effective contract drafting & the help of a knowledgeable title underwriter.
Although closing deadlines may be important to the parties involved in the transaction, often these deadlines are meaningless to third parties whose participation is vital to the transaction. A skilled real estate attorney can recognize when a delay is happening and may push for timely responses when needed.
Issues tend to come forth towards the end of a closing, sometimes due to the necessity of relying on these independent third parties and having to provide certifications and showings dated in close proximity to closing. As the closing nears, all representatives of the buyer and seller should remain available and prepared for last minute changes.
It is important to be proactive and try to resolve issues in a timely manner. It may be hard to predict all of the ever-changing demands of a commercial closing, and this is why it is that much more important to hire an experienced attorney for your closing.
Escrow In A Commercial Real Estate Closings
Most residential home sales have an informal escrow process. Because commercial real estate sales typically involve much greater sums of money and are much more complex, escrow is more formal and tightly controlled. Capital for a commercial transaction often comes from many different sources and because there is less regulation of commercial real estate deals, the parties must do more due diligence to protect their investments. The paperwork involved in a commercial closing is more extensive and customized than the form documents used when buying a home.
In a commercial closing, each deal has a unique set of escrow agreements. A commercial real estate closing attorney will make sure that all agreements are met, to prevent the deal failing and make sure the other party is complying.
The parties will often have negotiated an escrow agreement that the agent must verify has been satisfied before releasing any of the funds.
Want to estimate how much your closings costs will be?
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How A Commercial Closings Attorney At Magnolia Law Can Help
There is significant room for confusion and for things to be missed during a commercial closing. There are many main components of a commercial closing including due diligence, escrow, and the closing documents. Numerous things can go wrong at any step during the closing process. This could include things such as title issues, missing documents from the due diligence, the assignment and assumption of leases are missing, etc.
It is not worth risking delaying or derailing your commercial real estate transaction because you do not have an experienced Fort Lauderdale commercial real estate attorney on your side. Contact Magnolia Law today to speak with skilled attorneys who can guide you through your commercial closing.
Our firm’s goal is to ensure that our clients understand the terms and conditions of their real estate contracts, secure the correct number and level of inspections, and enter into the best purchase/sale agreement and mortgage based on their unique situations.
Magnolia Law is proud to be a law firm member of The Fund — a division of Florida’s largest title insurance underwriter, Old Republic Title.
