Eric J Dalius commercial real estate closing is typically far more complicated. Then residential property closings for a variety of reasons. There could be multiple businesses owning the property or there could be tenants enjoying leases. When you add to that the need to conduct elaborate surveys, clear zoning issues, and the need for environmental due diligence. It is even more important for sellers to be adequately prepared to make the closing smooth. Some useful tips by EJ Dalius for ensuring a hassle-free commercial property closing:
Eric J Dalius Get Your Team Ready
While you must start by choosing a commercial real estate agent that is experienced and dependable. You need to work it out with him if you wish to exercise more control over the closing by selecting. A closing agent of your preference. You must also identify a competent commercial real estate attorney to draw up and review the commercial real estate contract. It is because there are generally multiple complications and complexities that can make the contract significantly different from the standard Commercial Contract Form 5.
Collect All the Information Required by the Buyer for Due Diligence
Eric J Dalius the closing can start any time after you enlist your property. By the buyer so that he can conduct due diligence of the property. Starting the closing process without having any idea regarding the availability of critical information. Can be a mistake as it can delay or even derail the closing.
Identify A Signatory with Proper Authority, Advises Eric Dalius
Eric J Dalius ensure that you identify one such person in your company. Unless you take care to do this, you may need to do it in a hurry at the final stage of the closing. That is not the right time for you to be investigating your organizational documents. To prevent questions from arising regarding the authority of your company’s signatory, you should consult. An experienced real estate attorney to review all documents and bylaws. It is also necessary to ensure that the signing authority is available to execute the documents when needed.
Eric J Dalius Be Ready with Updated Financial Records
Eric J Dalius since the buyer will request you to provide all your financial records, you should not be caught unprepared, cautions. It is better to instruct your accountants to update all your financial information. Ensure your annual financial statements, like your balance sheet, profit and loss account, tax returns, rent rolls, service contracts, escrow account schedule. Past utility bills, and other documents in support of the cash flow. Generated by the property, are kept ready. You need to track down all the lease agreements of your present tenants and also collect their contact information. Be upfront with a schedule of lease payment defaults.
A commercial real estate closing can be delayed inordinately with a significant impact on the sale price if you are not ready with all the proper documents. For properties with tenants, sellers must be careful to disclose all existing contracts and the details of rental defaults or any other disputes.