Close of escrow for commercial property is the final stage of your sale, but a handful of details still need attention before you can call the transaction complete. Wrapping up these last steps carefully protects you from problems after the sale closes.
The Final Walk-Through
The buyer typically inspects the property one last time, either the day before or the day of closing. This walk-through confirms the property matches what the buyer agreed to purchase and that no equipment or fixtures included in the sale have been removed. Keeping the property in the agreed condition through this final check helps everything stay on schedule.
Closing Day
If you have come this far, this means that it is almost time for a congratulations, but not yet. Do not forget to tie up these loose ends:
Final Walk-Through Inspection.
More of a formality than anything else, the final inspection takes place the day before, or the day of the closing. The buyer visits the property to verify that all is in working order, everything is the same as when the buyer last viewed the property, and that there are no extra items left behind.
Cancel Property Services and Utilities.
We will provide a list of useful numbers for the termination of property services and utilities after the closing occurs.
Be Prepared.
We are ready to assist you should an unforeseen glitch pop up, even at this last stage. If something at the property breaks down or the buyers’ loan does not pull through on time, there is no need to worry. We have encountered these problems before so we know how to handle them efficiently and in a stress-free manner.
Closing.
The closing agent will furnish all parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. The buyer(s) will sign this statement and then you will sign as well as the closing agent, certifying its accuracy. If you are unable to attend the scheduled closing, then arrangements can be made depending on the circumstances and the notice that we receive. If you are receiving funds from the transaction, you can elect to either have the funds wired electronically to an account at your financial institution, or have a check issued to you at the closing. The seller should arrange to have all property keys and any other important information for the new purchaser at the closing, so that the purchaser may receive these items at this time.
What Happens on Closing Day
The closing agent prepares a settlement statement detailing every financial transaction in the sale. Both the buyer and seller sign this statement, and the closing agent certifies its accuracy. According to the American Land Title Association, a title or escrow company typically handles this documentation along with the transfer of funds. You can choose to receive your proceeds by wire transfer or by check at closing, and you should arrange to have keys and any building access information ready for the new owner.
Close of Escrow for Commercial Property: What to Expect Afterward
Once escrow closes, the sale is complete and the funds are yours. We track every deadline leading up to close of escrow so nothing falls through at the last minute. Review our recent sales to see how similar transactions have closed. Contact us when you are ready to talk about selling your property or have questions about the closing process.