The difference between commercial and residential real estate closures
Magnolia Law real estate law firm in Fort Lauderdale, Florida explains to the public why commercial real estate closings are so different from residential real estate closings.
Fort Lauderdale, Florida – October 11, 2021 – When a Fort Lauderdale resident decides to buy or sell a commercial property, they should be aware of all the differences between a standard residential real estate fence and a commercial real estate fence.
For commercial real estate closings, it is imperative that the buyer engages a lawyer to protect them as commercial real estate closings are extremely complex. There are many pitfalls that can be avoided if the buyer hires a commercial real estate closing attorney who is very experienced and knowledgeable about Florida real estate laws.
The first difference between a commercial close is escrow. People who have bought a home before know about escrow, but this kind of escrow is very informal. In the case of a commercial close, the escrow is much more formal and complicated. Larger sums of money are at stake, and the money can come from a number of different sources.
The closing lawyer will need to make sure that the escrow is set up correctly so that the money is properly protected if something fails.
The second way that commercial real estate closings are different is through legal persons. Usually, in a commercial closure, property is bought and sold by legal entities rather than individuals.
Investors and buyers are setting up these legal entities because business closures involve a lot of money. Of course, everyone involved wants to limit their liability if things go wrong. The buyer and seller usually set up a corporation for themselves, or an LLP, or an LLC, which is only used to own the real estate.
It’s easy to see why it’s so important for buyers to hire a Fort Lauderdale lawyer for business closings. When people start a company to own commercial property, it protects them against loss. If the company is sued, individuals only lose their investment, they do not lose their personal assets.
Another difference in commercial real estate closings that will require the attention of a knowledgeable closing lawyer is the paperwork that is involved. Even though both parties have likely created a corporation or LLC, there must always be someone signing the documents. Closing counsel will need to take all necessary legal steps to ensure that the person signing the closing documents actually has the authority to do so.
About Magnolia Law – The Real Estate Closing Firm
Magnolia Law was founded on the fundamental principles of compassion, integrity, resilience and courage. Magnolia Law real estate attorneys specialize in managing all aspects of residential and commercial real estate closings. They offer free consultations to assess the individual case of each client. Whether you’re buying a home, refinancing your loan, or purchasing an investment property, a Magnolia Law Fort Lauderdale real estate attorney can take care of your closing. The firm’s real estate attorneys serve brokers, realtors, lenders, developers, mortgage brokers, builders, lawyers, investors, buyers and sellers throughout the state of Florida. The company is also proud to be a member of The Fund, a division of Florida’s largest title insurance underwriter, Old Republic Title.
Company Name: Magnolia Law – The real estate closing firm
Contact: Erica Busch
E-mail: Send an email
Telephone: 9540 451-0088
Address:101 NE 3rd avenue Suite 1500
City: Fort Lauderdale
Country: United States