One of the most significant decisions and transactions a person undertakes in their lifetime is the purchase or sale of a home, condominium, or vacation property. Commercial real estate transactions, such as buying or selling an apartment complex, office space, warehouse, or shopping center, may involve even more risks in terms of both the buyer’s and the seller’s financial exposure.
The entire process, and somewhat complicated procedures involved, may be very stressful for both buyers and sellers. Whether you are a seasoned buyer or seller in residential or commercial properties, there are likely different elements involved in the closing process for each. Read on for information on some of the key distinctions.
#1 Purpose of the Closing
The original reason for the purchase is one of the key distinctions between residential and business closings. While commercial properties are bought, sold, or leased for business purposes, residential properties are bought to provide housing for individuals or families.
#2 Closing Process
Residential closings are routine and controlled, typically involving just the buyer and seller, as well as a realtor, closing attorney, etc. Commercial closings can become complicated since there may be so many parties involved in the sale (buyers, sellers, attorneys, real estate agents, corporate members, board members, etc.).
#3 Regulations & Contracts
Residential closings must comply with the Real Estate Settlement Procedure Act (RESPA), a federal statute that mandates full disclosure of settlement costs to homebuyers and sellers, much like commercial closings do.
Commercial closings must adhere to zoning requirements as well as other local and state laws, so even if RESPA is not a requirement, additional vigilance is needed. Overall, before the closing can take place and the sale is final, an attorney must issue a contract.
Some of the federal protections offered to purchasers and sellers in residential real estate are not afforded to commercial real estate transactions. There are many dynamics associated with each step, making it even more important that you have a qualified attorney guiding you through the process of a commercial closing.
Let Us Assist You Through the Buying or Selling Process
If you are buying or selling residential or commercial real estate, Apfelbaum Law can assist you through the entire process, from beginning to end. Though it may seem complicated, our experienced and knowledgeable team of attorneys will walk you through every stage of the closing process to ensure that you have a stress-free and pleasant experience.
Whether you need assistance with a residential or commercial closing, or have questions about any potential legal matter, contact Apfelbaum Law for a consultation.
