Commercial Real Estate
Purchase and Refinance of Commercial Closings
Just as in residential closings, the closing attorney represents the buyer, working with the commercial realtor when applicable, in all phases of the purchasing process, including searching title to ensure marketability of title, providing advice concerning various pre-purchase issues such as environmental, zoning or leasing questions, preparing loan documents or packages, working with the buyer’s lender to make sure all requirements of the loan are met, conducting the closing, and obtaining title insurance for the buyer and, when applicable, the lender. The loan closing of a refinance includes many of the same requirements of a purchase of commercial property. In North Carolina, unlike many other states, purchase closings and refinances must be conducted by or supervised by an NC licensed attorney, rather than by a title company or the bank itself.
Complex Financing Arrangements
In cases where financing is needed for large construction projects and/or purchases, the legal process is much more complicated than in a regular commercial arrangement, especially if the loan involves a government program such as the Small Business Administration, etc. In addition to all the activities required above, a complex financing arrangement may include the creation of one or more new entities, assistance with obtaining an ALTA survey meeting the lender’s stringent requirements, assistance in obtaining an environmental study, work on zoning issues, and a significant amount of other due diligence work. Working in conjunction with an experienced real property attorney can help streamline the process and protect your interests. Our attorneys can provide all the necessary legal assistance to complete such a transaction successfully in a timely, efficient and accurate manner.
As in a residential closing, if we are the closing attorneys in a transaction, we cannot provide legal advice to the sellers. However, we can assist sellers with their part of the transaction if we are not doing the closing. Our attorneys have a great deal of experience assisting sellers as well as buyers.
In a commercial purchase, attorneys are more often involved in the negotiation process of the purchase agreement, in conjunction with real estate brokers if applicable. Many more issues are typically negotiated in a commercial purchase agreement, especially issues concerning environmental and other warranties.
Although we do not recommend selling or purchasing without an experienced realtor’s help, our attorneys can provide drafting and negotiation assistance in a commercial purchase arrangement, in conjunction with the realtor.