Today, I focus my labor on the closing process in commercial real estate deals. After all, I’m penning this post before Labor Day weekend, so it proved prescient.
Whether you rely on the rent generated or for the utility gained by your business as an investor or an occupant, you execute a similar process to become an owner. Let’s dive in, shall we?
A search is conducted, a candidate for purchase is selected and negotiation commences. Once the terms of the buy are settled between buyer and seller, a contact, the purchase and sale agreement, is drawn. That part is relatively easy. Now the fun begins. The buyer and seller now must complete the deal. What occurs after the paperwork is signed is the subject of this column.
Purchase and sale agreements – whether standard or proprietary – provide a roadmap for how to proceed. Price, financing, if any, due diligence period, escrow holder, title company, deposits to open, deposits once contingencies are…