Dealing with the intricacies of commercial real estate closings can be daunting, not only for first-time buyers but for seasoned investors as well. The closing is the culmination of a careful search, due diligence, and adept negotiations.That’s why it is essential to have an experienced real estate attorney at your side during this significant, multifaceted process. If you are seeking a savvy attorney with a clear understanding of commercial real estate in New York and New Jersey, you need look no further than the offices of Merlino & Gonzalez.
For over 20 years, Merlino & Gonzalez, from our offices in Staten Island and East Brunswick, has provided wise counsel and strong legal representation to clients going through the intricate process of commercial real estate closings. This content is designed to explain the critical steps that precede a closing, as well as the closing itself.
Pre-Closing Preparations
The journey to a successful commercial real estate closing begins well before the actual closing date and typically involves:
- Initial Research and appraisal during which the neighborhood market is investigated and the property’s value professionally assessed (a step that is crucial for financing).
- Negotiation during which both sides work hard to settle on a fair price.
- Title Search and insurance in which public records are examined to verify the seller’s right to transfer ownership, to identify any claims, defects, or liens on the property and to purchase title insurance to provide protection against future claims on the property.
- Establishing an escrow account is to secure the transaction. In escrow, a neutral third party holds funds until all conditions of the purchase agreement are met.
- Performing due diligence which involves a comprehensive evaluation, including a review of zoning laws, environmental assessments, property surveys, and existing leases.
- Final walk-through to ensure that the property’s condition has not changed since the sale agreement and that any agreed-upon repairs have been completed.
During each of these steps, having a skilled commercial real estate attorney’s guidance and advice is invaluable.
The Commercial Real Estate Closing Itself
The closing is a meeting during which ownership of the property is officially transferred from the seller to the buyer. It involves:
The Reviewing, Signing, and Exchange of Numerous Documents
Our attorneys will review these documents with you, making certain you understand each one fully before signing it.
- Bill of sale to transfer ownership of personal property included in the sale.
- Deed to transfer ownership of the property from seller to buyer.
- Loan documents for buyers who are financing the purchase, including the mortgage, promissory note, and loan agreement.
- Closing statement, an itemized list of all the transactions and fees paid by each party.
- Signing authority, necessary if the buyer or seller is a corporation, LLC, or partnership to ensure that the individual signing the documents has the legal authority to do so on behalf of the entity.
Making Necessary Payments
During he closing, the following payments are made, typically by cashier’s check or wire transfer, to finalize the deal. These fees include the purchase price and some or all of the following:
- Loan origination fees
- Appraisal fees
- Insurance fees
- Survey Fees
- Legal fees
- Brokerage fees
- Taxes
- Transfer taxes
- Inspection costs
- Pro-rated utility
- Recording fees
The services Merlino & Gonzalez provides continue after the closing since we are committed to ensuring that your transition goes smoothly, whether you are the buyer or seller. We will ensure that all contractual obligations are fulfilled and address any post-closing disputes.
The Role of Our Skilled Real Estate Attorney in a Commercial Closing
A skilled real estate attorney is indispensable in navigating the complexities of a commercial real estate closing. At Merlino & Gonzalez, our attorneys play a pivotal role in ensuring that every aspect of the closing is conducted smoothly and efficiently. Our services include:
Preparation and review of documents to make sure all documents accurately reflect the terms of the deal and protect your best interests.
Providing legal advice on all aspects of the closing, from negotiating terms to understanding legal obligations.
Addressing and resolving any issues that arise during the closing process, from disputes over property condition to last-minute financial discrepancies.
Representing you during negotiations and at the closing table, ensuring that their rights and finances are protected.
Clarifying confusing elements of the closing, including translating legal jargon so that you are kept fully in the loop.
Our Accomplished Commercial Real Estate Attorney Will Make All the Difference
No matter what transpires during your commercial real estate closing, your lawyer must be well-prepared. At Merlino & Gonzalez, we understand that an effective, efficiently conducted commercial real estate closing is your gateway to a new and exciting future. We will make sure it goes smoothly and is carefully monitored so that you come out ahead. Contact us today to discuss any and all aspects of your commercial real estate transaction. You will find that having Merlino & Gonzalez as your partner will give you an important edge.