The title company will provide you with many documents for the closing in advance. Have your attorney look over everything to make sure it is all in order before the closing. I always look at the taxes to make sure they have been calculated correctly. Mistakes are easily made, so a quick check is good for everyone concerned.
Try not to set your closing on the last day of due diligence period, especially if it is a holiday. I was at a closing where the money had been approved but wouldn’t be available until the next day. We went ahead and closed, but no money changed hands for 24 hours. If this had happened on the last day of the due diligence, either the seller or the buyer could have canceled the transaction.
The title company will give you a list of what to bring to the closing and how much money will be paid. Usually, the title company requires a certified check or a wire transfer. You will also be required to bring proof of insurance on the new building. You can choose to close in the same room as the seller or not.
After an hour of signing your name at least 50 times, you are the proud owner of your building!
Purchasing takes less work then a lease. The hard part is finding the right building for your business. Having a commercial agent, a commercial attorney, and great mortgage company who will help you write the agreements and save you a lot of heartache.
Good Luck with your search for a new building. We would like the opportunity to help you find your next building, so contact us at infor@compass-commercial and let’s work together to build your dreams.
Sample Calendar for a Commercial Real Estate Sale
Paragraph Description Days After Execution Due Date Completed
Apply for mortgage:
Blue prints, leases, historical information, building contract:
Seller to deliver estopple certificates
Title work due to purchaser:
Notification of title issues:
30 days from notice to seller, title issues resolved; closing can be extended if there are any issues:
Estoppel letters due to buyer
If title issues can’t be resolved, timing to correct issues can be extended beyond this date:
Closing 14 days after purchaser gets mortgage commitment or within 60 days of a fully executed PA. Purchase shall have an additional 15 days:
If inspections aren’t acceptable, purchaser must notify seller in writing.