When negotiations are over, it is easy to think the hard part of a real estate transaction is over. However, one important step remains that holds many parts: closing.
Although these days many real estate closings occur electronically instead of in a sit-down meeting, several essential steps remain that make closing much more manageable. For both buyers and sellers of commercial property, taking the following actions can save many headaches on the day of closing:
Check off any conditions to closing
Review the sale agreement for any terms that must be fulfilled prior to closing. Failure to comply with requirements in the contract can derail the whole process.
Ensure the right parties are available
The last thing anyone wants is a delay in closing because the person who is meant to sign documents turns out to be unavailable. Determine who will have the authority to sign early on, and ensure they are available the day chosen as closing.
Determine how payment will transfer
In most commercial real estate transactions, the parties will use a Federal Reserve service called Fedwire to complete payment. However, some title companies may require a different money wiring process. Find out the wiring procedures for involved parties as early in the process as possible to plan accordingly.
Have someone in your corner
With thousands or even millions of dollars on the line, a commercial real estate transaction is no time for guesswork. Ensure closing is as smooth as possible by consulting with an experienced Long Island real estate attorney early in the process.