Commercial Closings

Charleston, South Carolina Commercial Closings Attorney

Purchasing or selling commercial property is often a major investment, with respect to both time and money. When conducting commercial transactions, there is often an interest by both sides in completing the process as quickly and efficiently as possible. Time is money, especially when commercial real estate is involved.

Commercial closings are complicated and can be quite legally challenging. At Cobb Hammett, we seek to uncomplicate the process of commercial closings for our clients. By providing skilled legal counsel, backed by years of experience, and a deep understanding of South Carolina real estate law, our dedicated commercial closing attorneys are able to negotiate highly effective and financially beneficial real estate deals for our clients. Whether you are closing on a commercial property or considering purchasing commercial real estate, our legal team can assist you. Call us today at 843-936-6680 to learn more.

There are four main steps that are involved in the commercial closing process, namely:

1. Escrow: During escrow, a neutral third party will be assigned to hold money in an account until either all the escrow requirements are met or one party withdraws from the transaction. No money is permitted to leave the escrow account until both parties have fulfilled their conditions, which adds a layer of trust to the transaction. Compared to residential closings, escrow is more formal and controlled in commercial closes. Both parties have the ability to establish the conditions of escrow, allowing for flexibility and negotiation. 
2. Legal Entities and Authorities: In many cases, a commercial real estate deal is made between two or more legal entities, rather than between individuals. This is often done to limit liability. Thus, our clients often wish to create a legal entity, namely a corporation or an LLC, before they conduct the commercial real estate transaction. 
3. RESPA and Due Diligence: The Real Estate Settlement Procedures Act (RESPA) is the primary federal legislation that governs residential sales. Since RESPA does not apply to commercial closings, buyers and sellers must perform detailed due diligence on the property they wish to purchase. Moreover, there must be greater care taken in the structuring of the real estate agreement, and the documents used to conduct the transaction.
4. Title and Closing Paperwork: Before closing a commercial transaction, both parties must review the assumption of leases, deeds, environmental reports, zoning disclosures, and any other documents that were drafted during the process.