Closing on a piece of commercial real estate can take time, money and a lot of effort. The last thing you want is for the sale to fall through at the last minute due to problems with a title or issues with escrow.
That’s why it’s important to have a plan for your commercial real estate closing. Whether you’re buying or selling, you need to know that the transaction is going to go smoothly. Even a seemingly small error could result in expensive corrections, which is something to avoid.
What should you plan to do during the closing process?
During the commercial closing, you will want to start with the title examination. This allows you to see if there are any issues with the title that need to be cleared, such as clouds on the title or other problems. If so, identifying those problems now will give you time to correct them or ask for them to be corrected, depending on which side of the sale you’re on.
Another thing to put in your closing plan is finding title insurance. Buyers, sellers and lenders are protected when title insurance is in place, so it’s worth finding the right lender and choosing a policy that offers the best protection. A strong title insurance policy will make a difference.
Finally, consider talking to a legal professional, so that you can go over documents such as contracts or clauses that may compromise your best interests in the future. You want to be sure that this transaction relieves you of responsibility if you’re a real estate agent. You will want to be sure that it protects your interests if anything should go wrong with the property in the future.
Get the right help to protect your own interests
The commercial closing process is not the same as a residential closing, so it’s necessary to take steps to reduce liability, clear the title and be sure the closing can proceed smoothly. If you’re trying to look out for your client’s best interests, you should know that someone is looking out for yours as well.