Searching for and buying commercial real estate is exciting, stressful and complicated all at the same time. And that doesn’t even take into consideration what could go wrong when you finally reach the closing table.
The way you prepare to close on a commercial real estate deal is critical to your success. With the right details in place, as well as a strategy to guide you, you’ll feel confident in your ability to proceed.
Here are some steps you can take to prepare for your closing:
- Review the contract one last time: From the purchase price to disclosures and everything in between, it never hurts to comb through your contract a final time before arriving at the closing table. Make note of anything that doesn’t add up, and then ask for clarification in advance.
- Schedule a final walkthrough: Don’t assume that the property you last saw is the property you’re buying. It should be, but things can and do go wrong in the days, weeks and months leading up to your closing. For example, you could pinpoint damage during the final walkthrough that wasn’t there when you made your initial agreement.
- Make sure you understand your closing disclosure form: If you’re financing the purchase, you’ll typically receive this from your lender three days before your closing. The numbers here should be similar or identical to those provided in your loan estimate. If you find that your lender is trying to charge you more, find out why and then determine if you want to proceed.
Take what you need
Rather than show up at your closing empty handed, bring these items with you:
- All documents you’ve collected during the process
- Proof of insurance
- A copy of the purchase contract
- Money for your down payment and any other closing costs you’re responsible for
Even if you have experience buying commercial real estate, every transaction is unique. When you prepare accordingly, you shouldn’t be caught off guard by anything that happens before and during your closing.
If you run into an issue, such as with your purchase agreement or loan documents, learn more about your legal rights and consider the idea of delaying your closing until you figure everything out.