Commercial Real Estate Loan Closing ChecklistReal Estate Influence
October 10, 2012 — 1,001 views
Commercial Real Estate Loan Closing Checklist
A commercial real estate closing is the final step in the real estate sales process. In an ideal closing situation, both the buyer and seller are motivated to sign the closing papers and finalize the sale. The lender will have all conditions of closing addressed, and the closing will proceed without delay. However, seasoned commercial real estate sales and lending professionals understand that issues can arise during this final step in the process that can delay the finalization of the sale.
Before the Closing
To avoid delays and issues at the closing table, there are some steps that you can take during the days leading up to the closing. You can use this closing checklist to prepare for the closing.
- Verify that all of the lender’s closing conditions have been satisfied. In some cases, there are conditions that will be met at closing. If this is the case, ensure that all parties involved in satisfying closing conditions are aware of the conditions. If possible, address those conditions before the actual closing. This will prevent unnecessary delays with the closing.
- Review the closing statement thoroughly to ensure that all charges and credits are accurate, and ensure that the buyer is aware of the funds that need to be brought to the closing table.
- When possible, provide closing documents to the buyer and seller beforehand so that they can be thoroughly reviewed and questions can be answered before the closing.
- Verify that the buyer is aware that he needs to bring a photo I.D. card, funds for the closing and any conditions necessary to the closing table. Also, ensure that the buyer wires the funds to the closing agent or brings a certified check for the amount of funds due.
At the Closing
When the skills of an experienced closing agent or title agent are utilized and care has been taken to review documents and conditions before the closing, many closings will proceed without a hitch. However, you should plan to be on-hand during the closing to answer questions that all parties may have. As a commercial real estate expert, your knowledge and experience can be of considerable use at a closing. Given the nature of the event, tension and stress levels can run high, and you can use calm reassurance coupled with your knowledge and expertise to ease tension.
Many commercial real estate closings will proceed without fanfare, and you can minimize the possibility of delays and closing issues by following these steps.