With 33% of home investors being first-time buyers, the role a real estate lawyer can play during the closing process is extremely important. Closing a commercial property in Nashville is not always easy. However, remember to pay close attention to the particulars of your agreement.
Even though specific details vary depending on the transaction, there are several overarching processes that are important to consider. With the help of an experienced real estate attorney, you can guarantee that none of these items will be overlooked, and that all of your questions will be answered.
Here are the top ways a real estate attorney can help expedite your property purchasing process:
- Closing Costs
- Property Document Verification
- Contract of Escrow
- Duty of Care
- Getting the Deed
The Cost of Closing
It is important to remember that the listing price is not always the full extent of the costs associated with commercial real estate. Particularly with commercial properties, closing costs can add up quickly. During the planning process, the cost for this should be budgeted for. When an offer is made, the total closing costs are not always clear, but an estimate can and should be provided.
A commercial real estate attorney can work with the lender to try to keep these costs as low as possible and expedite your purchasing process. However, the buyer should still plan on these costs stretching thousands of dollars.
Property Document Verification
As a general rule, commercial buildings are used for a variety of purposes and have a variety of tenants. All leases and operating statements for the last three years should be available for review prior to closing. Additionally, documentation of maintenance and scheduled improvements should be in the buyer's hands as well. When buying commercial real estate property, check for easements, encumbrances, and anything else that may have an impact on the purchase process. When it comes to negotiation and verifying terms, a real estate attorney can help you speed up and clarify the process.
Contract of Escrow
If you are purchasing commercial real estate and closing it, an escrow agreement will need to be completed. Generally, Escrow refers to an independent third-party who holds funds until all the requirements for the transaction are met, or one of the parties pulls out of the transaction. Funds disbursement requirements will be outlined in an escrow agreement.
The escrow agreement specifies the terms agreed on by the buyer and seller prior to closing. There will be specifics such as the identity of the escrow agent and the amount of funds held in escrow, as well as acceptable ways that the agent can utilize the funds. A real estate lawyer can ensure you understand all the terms of an escrow agreement if you don't understand the specifics involved.
Commercial real estate closings in Nashville necessitate an experienced real estate attorney. Visit Rochford Law & Real Estate Title today!
Duty of Care
The closing process for commercial real estate can be affected by everything that happens before and after the transaction, so it’s imperative that you check all factors involved in the transaction. Understanding property financing, seller stipulations, obligations to meet the contract, zoning restrictions and legal liability will be very important. Your new commercial property won't surprise you with anything if you do this.
Upon closing, the buyer will become responsible for any problems relating to the property. So it is advised that the property itself be thoroughly inspected. If expensive repairs are discovered before closing, they may require more negotiation before the closing. You can get the keys to your property on time and within budget with the help of a real estate attorney when going through your purchasing process.
Getting the Deed
Property ownership is transferred through a deed. The seller guarantees that they own the property they're selling with these sworn and signed documents.
You can use different types of deeds depending on your transaction. Time-consuming and tricky, this process can eat up your clock and wallet. In order to ensure you follow the proper guidelines and warranties, these documents should be prepared by a professional real estate attorney. Having the help of a real estate attorney can speed up your purchasing process, save you time and money and help you stay within the law.
Visit Rochford Law & Real Estate Title for help with commercial real estate closings in Nashville today!