What Happens During the Sale Process of a Commerical Space

A Simplified Buyer’s Checklist

Here’s some more free information about commercial real estate. 

Let’s say you’ve found the commercial property and you’re ready to move forward with the sale. Here’s what will happen during the Sale Process of the deal. 

In this example, let’s say you are a buyer using financing to purchase the property. Once the agreement has been signed by both parties, we follow this checklist upon execution of the agreement.

• Send an email to all involved clearly defining THE END OF DUE DILIGENCE & PROPOSED CLOSING DATE.

• Send AOS (Agreement of Sale) to the Title Company with instructions on how the BUYER can send the initial deposit. (wire or check) 

• Title ordered by the title company. Note: this can take up to 2-3 weeks 

• Ensure buyer(s) have provided any due diligence items agreed to. (Current vendors - Leases - Floor plans - etc) 

• Appraisal ordered & date set (buyer's bank chooses the appraiser). This can take up to 3 weeks from the date of the appraisal.

• Environmental Report (If needed) / Chosen by the buyer.

• Use & Occupancy: Local municipalities handle these (if needed) 

• Bank indicates everything looks in line.

All of the above should be done BEFORE the conclusion of Due Diligence.

• Insurance in place 

• Utilities: Ensure that each side works to make cut off date that will work for each site 

• Conveyancing: These are payoff amounts or proof of payments for banks, certain utilities, taxes 

• Settlement Sheet: draft circulated 3 days ahead of a set settlement date 

For a more detailed list or if you just have questions, please feel free to connect.