Entering the field of commercial real estate can be rewarding, stressful and overwhelming all at once. There's plenty of information you need to know before attempting a commercial real estate transaction, whether you are buying or selling. You should also know what to expect when you reach closing for such a transaction in Fort Lauderdale, Florida. We will take a look at the closing process for a commercial transaction in today's post.
As with other types of real estate transactions, you will go through an escrow period. This is where a third party holds money in an account until all of the requirements of escrow have been satisfied. This is an important step that helps both sides trust each other.
The due diligence part of the closing process should never be overlooked. Here's what to conduct under due diligence as a buyer:
- Receive an updated report from the survey
- Proper execution for contract of sale
- New environment report is reviewed
- Most recent title insurance policy has a receipt
- Review of the records and books of the seller
- Conditions for termination notice have are in order
- Zoning compliance has been confirmed
- Conduct a search for outstanding liens or taxes
Here's what to conduct under due diligence as a seller of commercial property:
- Proper execution of the contract
- The money has been deposited into an escrow account by an escrow agent
- Any objections to the survey or title report have been filed
- Buyer has completed the assumption of leases and execution of assignment
Are you ready to buy or sell a commercial piece of property in Florida? Take note of the closing process as outlined in this post so you can prepare for every step along the way.
Source: Signal Realtors, "Closing Process Looks Like in Commercial Real Estate Purchases," accessed April 05, 2018