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What costs do you pay at a commercial real estate closing?

If you've ever closed on a home, then you've probably had to pay a lot of costs at your residential real estate closing. You'll have many of the same expenses when you close on a commercial property. The costs that you'll have to pay when closing on your retail, industrial or another type of business space will likely be higher though. This has a lot to do with the cost of the property that you're buying being more expensive than your home.

Some of the expenses that buyers generally pay for at a commercial closing include financing costs and municipal tax transfer fees. It's also common for buyers to have to pay for property inspections, environmental due diligence studies and any related title endorsement expenses as well.

A buyer's lender may also require special survey additions to be conducted, especially if the property has topographical contours or it's located on a flood plain. A lender may tack the costs for these onto the closing costs.

Fees that a seller generally ends up having to pay at a commercial closing include state and county tax transfer fees, any costs necessary to clear the title on the property, title insurance and any prorated expenses for taxes.

Sellers may also be required to pay Uniform Commercial Code (UCC) searches to prove that the equipment that they're transferring doesn't have any liens filed on it. Lenders may request that sellers cover the cost of an American Land Title Association (ALTA) survey as well.

The costs that buyers and sellers must pay at the time of a commercial closing in Florida vary depending on the value of the property as well as buyer, seller and lender preferences. It may be possible for all parties involved to reach an agreement for one party to carry most of the costs or to split all of them equally down the middle. It can be helpful for you to have an attorney to advocate for you on your behalf in your Melbourne real estate transaction.

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