As 33% of people investing in a property tend to be first-time buyers, knowing how a real estate attorney can help with property closings can be extremely influential. Commercial real estate closings in Nashville can be challenging, however, the details of your agreement are incredibly important.
While the specifics of real estate closings tend to differ between each transaction, there are similar overarching processes that will require detailed attention. The presence of an experienced real estate attorney can ensure none of these items are overlooked, and can help keep you fully informed along the way.
Here are the top ways a real estate attorney can help expedite your property purchasing process:
- The Cost of Closing
- Proof and Sign Property Documents
- The Escrow Agreement
- Due Diligence
- Getting the Deed
The Cost of Closing
If you’ve invested in commercial real estate in the past, then you know the list price isn’t always the full extent of the costs. Commercial properties in particular can have expensive closing costs that can rack up your budget. This expense should be planned for and budgeted from the very beginning of the process. Typically, the exact amount of money needed for closing won’t be clearly defined at the time of an offer, but the amount can and should be estimated.
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.
Proof and Sign Property Documents
Generally speaking, commercial buildings can be used for numerous purposes and often have various tenants. Prior to closing, you should have a clear history of all building leases and operating statements for the previous three years. Maintenance and planned improvements should all be documented and in the hands of the buyer as well. Be sure to ask about any encumbrances, easements, or anything else that might affect the purchasing process of your commercial real estate property. A real estate attorney can help negotiate and proof these terms for you as well, speeding up the entire process.
The Escrow Agreement
When you purchase and close on a piece of commercial real estate, you will have to go through the escrow agreement. Escrow refers to a neutral third-party that will hold funds for the transaction until either all of the requirements are met for the sale, or one of the parties pulls out of the deal. An escrow agreement will showcase any requirements needed for dispersal of the funds.
Prior to closing, both the buyer and seller will agree upon the terms outlined in the escrow agreement. Escrow will outline specifics such as the identity of the escrow agent, the amount of funds held in escrow, as well as acceptable ways the agent can use the funds. If you’re unfamiliar with the specifics involved in a typical escrow agreement, working with a professional real estate attorney can ensure you understand everything you need to know.
Commercial real estate closings in Nashville necessitate an experienced real estate attorney. Visit Rochford Law & Real Estate Title today!
Due Diligence
When buying commercial property, you’ll want to ensure you do your due diligence. You’ll want to make sure you inspect all factors in the transaction as everything leading up to commercial real estate closings can affect the specifics of the closing process. You’ll want to fully understand property financing, any seller stipulations, obligations needed to satisfy the agreement, zoning restrictions or legal liability. This will ensure you won’t be surprised by anything with your new commercial property.
The property itself should also be thoroughly inspected as any problems become the responsibility of the buyer once the closing process is completed. Costly repairs found prior to closing can lead to more negotiations prior to closing. A real estate attorney can help ensure you don’t miss anything important when going through your purchasing process, ensuring you get the keys to your property on time and in budget.
Getting the Deed
The deed is the official document that transfers ownership of the property. These sworn and signed statements guarantee that the seller holds the title to the property they are selling.
With various types of deeds, your transaction will dictate which type of deed is used. This process can often be time consuming and tricky. Legally-binding, these documents will need to be prepared by a professional real estate attorney to ensure you follow the proper guidelines and warranties. Working with a real estate attorney can move your purchasing process along legally and in a timely manner.
Visit Rochford Law & Real Estate Title for help with commercial real estate closings in Nashville today!
