In today's Freedom Friday blog and email newsletter, I want to talk about a topic that I probably don't get asked about enough, and that's the sale of commercial property. Whether the sale is a part of buying and selling an actual business concern, or is separate from it, commercial real estate transactions are an important part of everyday life in the business world. So, in today's Freedom Friday blog, I'm talking about how to sell commercial property in Oklahoma.
A commercial real estate transaction involves property that is used exclusively for business purposes. This would include restaurants, warehouses, offices, hotels, retail spaces, and many others. While the seller and buyer are the key parties to a commercial real estate transaction, several other parties usually get involved during the contract negotiations, drafting, and closing process. Several kinds of professionals, including lawyers, can assist the process and make the transaction go more smoothly. Here are five (5) different types of professionals you may need to sell commercial property in Oklahoma:
1. Realtor
The first type of professional you may need to sell commercial property is a realtor. A realtor is a licensed agent who represents either the seller or the buyer. A seller's realtor (or the listing agent), advertises the seller's property, helps the seller find a suitable buyer, and sometimes will make an offer to a potential buyer. Meanwhile, a buyer's realtor helps the buyer find the right property to invest in and negotiates the deal with the seller's realtor.
2. Title Company
The second type of professional you may need to sell commercial property is the title company. A title company mutually represents both the buyer and the seller and ensures that the property is clear to sell. The title company will conduct a title search of public records on the property, examine the survey (if needed), and will disclose any title defects such as undisclosed liens, unpaid taxes, erroneous public records, or easements. In addition, the title company will obtain an insurance policy to protect the lender's interest in the property (lender's insurance) or the buyer's purchase price (buyer's insurance). This type of insurance provides coverage for any title defects which may be discovered and become an issue for the policyholder in the future. The title company also handles the escrow accounts and manages the honest money, escrow fees, realtor or broker fees, taxes, and the final payment to the seller at closing.
3. Surveyor
The third type of professional you may need to sell commercial property is a surveyor. Depending on the nature of the property being sold, the title company may require a survey from the seller as part of the business sale. If the seller does not have one that is acceptable to the title company, then a surveyor may be hired by either the buyer or the seller, depending on the terms of the contract. A surveyor will visit the property, map out the boundaries of the property, verify structures near and within the boundaries, and prepare a survey.
4. Lender
The fourth type of professional you may need to sell commercial property is a lender. A buyer will often need to finance its commercial real estate transaction. A lender will require certain items before approving a loan for the buyer. These items typically include a copy of the contract executed by both the buyer and the seller, internal documents approving purchase of the property, especially if the buyer is an entity, and other related documents.
5. Attorney
The fifth type of professional you may need to sell commercial property is an attorney. A commercial real estate contract is complex and includes many essential terms and conditions. An attorney can add value to your commercial real estate transaction in a lot of different ways. A seller's attorney can protect the interests of the seller by drafting the purchase and sale agreement with terms favorable to the seller. On the other hand, a buyer's attorney can protect the interests of the buyer by thoroughly reviewing the terms of the purchase and sale agreement which was drafted by the seller's attorney. The seller's and buyer's attorneys will also negotiate fair and favorable terms for their respective clients, and help their clients understand their rights and obligations. In addition, an attorney can help draft other required documents required at closing, including a resolution authorizing the sale of the property, a special warranty deed, seller's affidavit, and other documents which might be required at closing.
Thinking about starting a small business? Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth? Please contact me at [email protected] to schedule a FREE strategy session.
For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/
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