Rochford Resources Blog

Commercial real estate closings in Nashville can be challenging. The excitement of purchasing a new property can make it difficult to pay attention to the many details. However, these details are incredibly important.

The real estate sales process can be confusing for those without the abundant experience of a real estate attorney. There are a lot of terms that don’t come up in day-to-day life like escrow, lien, and easement. Documents of great importance seem to be required for every step along the way. Those entering the process might think it to be fairly straightforward—find a property you like, make an offer and get it accepted, then move in.

However, that is not often the case. There are plenty of circumstances that can arise that add a few more steps to the process. And throughout this process, everyone has their eyes on the final step— closing.

Commercial real estate can be a great investment. You buy a building, lease it to a company, and get a rent check in the mail each month. 

So how do you determine whether a particular piece of real estate is a good investment? There are several main factors: location, return on investment (ROI), appearance, and a clear title.

But first, what exactly is commercial real estate?

Buying a commercial property? Real estate transactions are complicated, and they come with a lot of fees during closing.

For the buyer, closing costs are generally between 3 and 5% of the cost of the property. Here are some of the different commercial real estate closing costs for buyers and sellers.

The Title and Title Insurance for Purchasing Your Home

A notable overlap of responsibilities for both the title company and the closing attorney is to secure a clean title to your property. The title is crucial for all buyers as it gives you a legal right to the house that you've purchased.

An easement is a common term you will encounter when discussing the commercial property. It affects both the buyer and the owner equally and is a complex system of legalities designed to protect landowners. There are varying degrees of easements available but are often hard to understand. Because most people will be affected by an easement, we've compiled all the necessary information to help you identify what you are up against.

Buying a commercial property is a complex process. Your entire business operation hinges on your ability to obtain a good deal, and the most crucial aspect of achieving this goal is understanding the contract tied to the sale. For first-time buyers, there are a lot of unfamiliar terms riddled throughout the document. So, we've put together some of the most common terms found in a purchase agreement that every buyer should know to complete a successful transaction.

Renting a commercial property is a big responsibility for your business. The size, location, and monthly lease could determine the success or failure of your enterprise. A commercial lease is prepared by the landlord and designed to protect and favor them, so it's important to understand the underlying terms before you sign.

Rochford Law & Real Estate Title, a long-standing member of the Nashville legal community, has released a new resource for investors and developers to help them better understand and navigate the complexities of the commercial real estate closing process.

A “Like-Kind Exchange,” also known as a 1031 Exchange or a Starker Exchange, allows investors to defer paying capital gains taxes on investment properties when they are sold, as long as another “like-kind” property is purchased with the profits of the sale. Congress enacted the like-kind exchange statue nearly 100 years ago, in 1921, to help investors avoid unfair taxation of ongoing investments in property and to encourage active reinvestment (Federation of Exchange Accommodators).