If you are planning to purchase a commercial property, no matter the size, you probably want to know what to expect when dealing with the closing costs. Closing costs are included in every real estate transaction and they are similar to the ones you face when buying residential property in Florida.
When preparing to buy a commercial property, you must get ready for the closing costs you will face. They will typically be higher compared to residential closing costs, even if the building is on the smaller side. Commercial closing costs can climb into the thousands of dollars, so be ready to pay a hefty tag.
As the buyer of a commercial property, you should expect to pay any of the following closing costs in the transaction:
- Title endorsements: These are endorsements that are required by the lender of the buyer in order to approve the loan. An example of a title endorsement includes an environmental hazard.
- Environmental due diligence: This is an endorsement that requires you to have an environmental test performed on the property you are buying. It helps to rule out any contamination.
- Special surveys: Special surveys include those conducted for floods or aerial issues as required by the lender of the buyer.
- Inspection: All properties must be inspected prior to a sale taking place. The inspection can find issues that the seller might not have even know about so they can be fixed prior to signing the documents.
- Financing fees: These are fees charged by the buyer's lender to facilitate the purchase of the property.
Are you purchasing a commercial property in Melbourne? An experienced real estate attorney will be able to guide you in the right direction and explain the closing costs process for the transaction.
Source: Realty Biz News, "Buyers Closing Costs for Commercial Real Estate Purchases," Daniel Doran, accessed July 28, 2017