Buying a commercial property to start, maintain or expand a business in Florida is a process that resembles buying a private home or other residence in many ways. There are several important differences, however, of which any buyer should be aware before closing on the building or site.
Are there any restrictions to what lenders can charge?
Contracts should specify who will be responsible for costs at closing, such as title insurance, deed stamps, surveys and settlement fees just to name a few. However, since the Real Estate Settlement and Procedures Act does not apply to many commercial and large residential properties, lenders are not restricted in what they can collect from buyers at closing.
What do sellers commonly pay for during a closing?
Sellers traditionally pay for title insurance, a property survey, a search to ensure there are no liens or disputes on the property and transfer taxes to Florida and the property county. Utility costs up to the day of property transfer and clearing costs -- which cover any previous financing of the property -- should also be resolved by the seller.
What do buyers commonly pay for?
Buyers often cover an environmental study, title endorsements such as discovered hazards, municipal transfer taxes, any extra survey needs and a property inspection. Any fees regarding new financing of the property are usually paid by the buyer.
Do I need a lawyer to close on a commercial property?
It is highly recommended, although not required, that you use the services of an attorney. Mistakes while closing can cost tens of thousands of dollars over the length of a loan and the ownership of the property. A lawyer can help avoid these errors.
Source: Realty Biz News, "Buyers Closing Costs for Commercial Real Estate Purchases," Daniel Doran, accessed Jan. 02, 2018