A commercial real estate closing can be tricky. Some settlement companies won’t even bother to handle a commercial transaction, and if they do, they charge outrageous rates. At Sure Title Company, we are not afraid of commercial transactions, large or small. We take them on with gusto! Whether you are purchasing commercial real estate or refinancing, close with Sure Title Company so that you can benefit from our fair rates and years of experience. Once you sign the contract to purchase your commercial property, let Sure Title Company coordinate the rest.
First, we will conduct a thorough title search on the property. Real estate agents and lenders rely on us to manage closing dates and handle the final disbursement of funds. We will coordinate with the lenders in order to ensure the closure of the seller’s loan and the onset of your loan. We will review your purchase contract to ensure that all terms are met and prepare your settlement statement (HUD-1). We provide both the commercial lender and the property owner with title insurance.
Normally, commercial real estate is owned by an entity—a corporation or LLC. Well, who is that entity? When conducting a residential transaction, all we need is the seller/borrower’s driver’s license to prove the identity of the person conveying or encumbering the property in order to verify that he is the property owner. But with a corporation, we must review all of the corporate documents to make certain that the correct person has the authorization to encumber or convey the real estate on behalf of the corporation.
With a standard residential transaction, a title search must go back 40 years. With commercial, we are required to search an additional 20 years back in time (60 years total). Additionally, because prior ownership may also have been commercial, we must be certain that the proper parties conveyed the property all the way back through the chain.
In order to complete a commercial real estate closing, we must also consult with the zoning authorities, the State Corporation Commission, and surveyors. Commercial real estate has different survey requirements that must be met.
How many people are involved in a commercial real estate closing? A lot more than are involved in a residential transaction. There are usually several corporate parties involved, several bankers, and a team of attorneys. Keeping all parties happy, informed, and on schedule is a real challenge!
It’s tough, but nobody knows it like us! We look forward to the challenge and our team has the experience and expertise to ensure a smooth transaction. Working with a company that lacks commercial experience will certainly delay the process and frustrate all parties involved, but Sure Title Company will get it done and get it done right!
Bear in mind, the above is a condensed version of a process that could be more complicated depending on the nature of the property, the parties involved, and the details of the transaction. The most important step you can take is retaining a skilled commercial real estate closing agency who can guide you. Give Sure Title Company a call at 901-881-0606 today to learn more.
Blog articles are purely for educational purposes and provides generalized information of the topic(s) covered. These articles should not be considered as legal advice.