Commercial real estate closing Archives - Attorney's Closing Services

Commercial real estate closings do not just happen, all of the parties involved and their respective counsel pave the way for a successful closing. At Attorneys’ Closing Services, we help law firms, title companies and businesses confidently handle their commercial real estate closings. When it comes to the close, every detail matters.

Here are 5 important tips to remember when closing a commercial real estate transaction:

Establish a plan. Developing a transaction plan is the first step. The plan must guide contract negotiations and the steps necessary for closing and post-closing. If there are certain zoning requirements, availability of utilities, or the confirmation of structural elements of a building, the plan along with the purchase agreement must address those issues and be included as part of the closing requirements.
Assess the issues. It is important to be prepared for issues that can arise during a commercial closing. Not understanding and resolving these issues timely is one of the greatest causes of transaction failure. “Risk-shifting” techniques can effectively mitigate transaction risks. This can include title insurance with appropriate use of available commercial endorsements. When addressing risk-shifting opportunities, an experienced commercial real estate attorney familiar with available commercial endorsements can often overcome certain title obstacles through creative and effective contract drafting and the assistance of a knowledgeable title underwriter.
Be prepared for third party delays. It is important to recognize that the closing deadlines important to the parties involved in the transaction are oftentimes meaningless to un-related third parties whose participation is vital to the close. These third parties can include government agencies or any vendor who is not a representative of the buyer or seller. An experienced commercial real estate attorney can recognize when a delay is occurring and push for a timely response when necessary. They have developed relationships with reputable vendors and third parties over the years who can expedite the transaction on the table.
Coordinate all closing requirements. New issues often arise towards the end of a closing, oftentimes because of the necessity of relying on independent third parties and having to provide certifications and showings dated in close proximity to closing. As the closing approaches, real estate brokers, commercial real estate counsel, and all necessary representatives of the buyer and seller should remain available and ready to respond to the changing demands and circumstances.
Proactively address potential obstacles. Sounds simple, but creative problem solving in any commercial closing transaction depends on a process that allows you to gather information and resolve issues proactively and predict the ever-changing demands of a commercial closing transaction.

At Attorneys’ Closing Services (ACS), we allow our clients to cut staff time and come to the closing table fully-prepared. When you partner with ACS, you have more than 50 years of combined experience in the fields of law and real estate on your side! ACS assists real estate attorneys and title companies with a variety of timely services that include complete closing document preparation, preparing commitments and policies, ordering products to satisfy title requirements and trust account reconciliation. Working closely with attorneys, title agents and lenders, we deliver professional closing documents of the highest quality – from the initial draft HUD-1 / Closing Disclosure to the final closing package.

Whether your office needs assistance with full or partial closing processing services, ACS is ready to step in at a moment’s notice. We tailor our services to meet each client’s individual needs. While we handle the processing, you can remain the closing agent and collect the premium. We would be honored to work with you on any and all of your real estate closings. Call us today at 407-270-8855 to see how we can help you.

To learn more, visit https://attyclosingservices.com/about-us/.

Anticipating problems before they happen will help your closing stay on track. Having a contract is just the beginning. Between 10 percent and 14 percent of pending real estate transactions do not close. Another 20 percent are delayed, according to a Realtors Confidence Index survey conducted by the National Association of Realtors®.

Setting realistic client expectations and educating your clients about possible issues that can occur at closing are essential- from buyers who may not qualify for a loan to delays with title. Most hurdles that delay or prevent a closing fall into three main categories, which include:

1. Loans & appraisals

2. Titles

3. Home inspections

New lending and closing regulations have resulted in more delays. Having a thorough understanding of the rules and allowing time for compliance will help you get over this hurdle. Changes to the federal Truth in Lending Act and RESPA have slowed down the closing process. The updated HUD-1 form adds a few more hours of document preparation.

Lending rules have also made it harder to close on time if circumstances change late in the deal. Amendments to the Truth in Lending Act require a three-day disclosure period if a borrower decides to change the loan amount or anything else that can change the interest rate.

To prevent delays, avoid last-minute changes whenever possible. If the matter is out of your control, the best thing you can do is help your client have realistic expectations about how long the transaction will take.

Title defects are another major closing hurdle, but one that can be avoided with the proper preplanning. Adding a checklist to the purchase contract can help identify issues that can hinder a title- basically anything that can be tied to the property such as bankruptcies, oil and gas leases, etc. Short sales and bank-owned properties are particularly prone to title issues. HOA fees and unpaid repair costs can have an effect on the title and delay a closing.

If a home inspection uncovers serious issues, the time it takes to negotiate which party pays for repairs and gets estimates, can result in big delays for a closing. Alerting buyers to possible high-cost repairs and suggesting that they factor those potential repair costs into their offer can help minimize post-contract negotiations.

By focusing in on these most common closing hurdles, you can successfully take control of your transactions and master the close!

Attorneys’ Closing Services (ACS) assists everyone from the sole practitioner to fully-staffed offices. We offer full service processing for commercial and residential attorney title agents. Whether your office needs assistance with full or partial closing processing services, ACS stands ready to assist you at a moment’s notice. ACS is owned and operated by Ronald J. Conte and David H. Trevett, practicing attorneys who have more than 50 years of combined experience in the fields of law and real estate. We would be honored to work with you on any and all of your real estate closings. To learn more, click here or call us today at 407-270-8855 to see how we can help you.

The 5 Keys to Closing a Successful Commercial Real Estate Transaction

Tips to Clearing the Most Common Closing Hurdles