Basics of Closing Commercial Real Estate Transactions by Angela R. Maverick

For those of us who have closed many commercial real estate transactions, we have come to expect the unexpected, but through our experience we clearly understand the basics of closings and are prepared to use our experience to achieve success for our clients.

Commercial real estate closings require much more than mere casual attention from the attorney handling the closing.  In order to achieve a successful closing for a client, one must focus and pay particular attention to every detail relating to the transaction.  A key point is to develop a plan for the closing as soon as the transaction is first contemplated and to focus on the requirements for successfully closing the transaction in a manner that will achieve the objectives of the client.  Having a plan in place ahead of time is important in the contract negotiation stage so that the contract accurately reflects the steps necessary for the closing.  It is beneficial to address issues such as zoning requirements, easements and availability of utilities in the contract stage so as to allow for such issues to be made contingencies to closing, if appropriate.

Another key point is to understand all of the significant issues that may arise from the time the transaction is first considered up through and including the closing.  Our clients rely on our experience to assist them in understanding the issues and how to resolve them in a way that furthers the objectives of our clients.  As a result of our experience, we are familiar with addressing and handling transaction issues likely to arise as the transaction progresses to closing.  We are able to address problems that arise by being creative problem solvers and generating solutions needed to ensure that the transaction can and will proceed to closing.

A third key point is to plan for delays caused by third parties who may delay critical deadlines with respect to the transaction.  These third parties often include adjoining property owners, lenders, appraisers, surveyors, title companies and other vendors whose participation and timely cooperation are crucial to the transaction.  As experienced attorneys, we understand and are able to anticipate delays by third parties and know when and how to apply pressure to such third parties in order to avert unwanted delays.

As a result of new issues which often arise at or near closing, there will be a flurry of activity seeming like a frenzy of commotion to those unfamiliar with commercial real estate transactions but which is really the norm rather than the exception.  At Andrews Barth & Harrison, we prepare for the ever-evolving circumstances surrounding real estate closings by being available and ready to respond to the demands of our client, the other party's counsel, the lender and/or other third parties whose participation is vital to a successful closing.  Through our many years of experience in closing commercial real estate transactions, we have learned to anticipate and to prepare for the last-minute frenzy which is associated with the hectic pace of coordinating all of the closing requirements and conditions.