Selling Commercial Property

  1. Seller signs commission/agency agreement with broker unless you sell the commercial property by yourself without using a real estate agent;
  2. Seller retains an real estate attorney after having a potential buyer or a binder is provided by the real estate agent with meets the Seller’s expectation;
  3. Seller’s attorney prepares Contract of Salesas per the binder / agreement and sends to buyer’s attorney for review, such documents may include but not limited to
      • Proposed Contract of Sales;
      • Rider;
      • Survey;
      • Existing lease, if any;
      • Other special terms or conditions / exhibits set forth in the Contract, if any;
  4. Seller’s attorney receives four sets signed Contract of Sales with contract down-payment (usually 10% of the contract price) from buyer’s attorney, and deposits into Seller attorney’s escrow account;
  5. Seller signs the Contract of Sales and two original copies of fully executed Contract of Salesare delivered back to the buyer’s attorney; contract is officially formed; Seller through his / her attorney, shall communicate with Buyer through Buyer’s Attorney in regarding the whole process, which may include but not limited to:
      • Deal with the ESA issue if there is;
      • Monitor the mortgage process if there is a mortgage contingency clause;
      • Handle the title defects, if any;
      • Provide other documents that maybe reasonably required by the Buyer’s Attorney,Buyer’s Bank or title company;
      • Confirm with Buyer’s Attorney regarding a closing date;
  6. Prior to closing, Seller, through his/her attorney,shall:
      • Orders payoff from the mortgagee, if any;
      • Order final meter readings for utilities, if any;
      • Arranging final walk through via real estate agent;
      • Prepare ACRIS Form & Deed;
      • Prepare POA, if required;
      • Corporate documents, if needed;
      • Calculate the real estate Tax, etc., and provide a check cutting list to Buyer’s Attorney;
  7. At Closing, Seller and/or Seller’s Attorney shall:
      • Be present on time at the closing table with proper ID;
      • Sign mortgage documents with your bank Attorney, if applicable;
      • Do adjustments on real estate tax, transfer tax (if applies), utilities fees (if applies), tenant’s rent & security deposit, and other fees / charges that may be applicable;
      • Sign closing documents which may include ACRIS, Deed, Affidavits, agreement / post-closing agreement (if applies) that required;
      • Pay your mortgagee (if any);
      • Pay your title bill;
      • Deliver keys / possession of the premises as per the Contract, and
      • Receive your final balance payment;
      • After closing, the property is officially transferred from Seller to Buyer.

*Please take note that the above procedural instruction is for general information only, it is not necessarily the same procedure as the case maybe; please discuss / consult with your real estate attorney for detailed transaction.