How Commercial Closings Differ

Commercial transactions run on the same foundations as residential ones — search, examine, clear, insure, close. What changes is the volume and complexity of what has to be examined.

Entity documentation

Almost every commercial party is an entity. Establishing who may bind an LLC, a partnership, a corporation or a REIT is real work, particularly where entities are layered. Expect operating agreements, resolutions, certificates of good standing, and sometimes an opinion of counsel.

Leases

Tenants in possession have rights that may survive a sale. We review leases, obtain estoppel certificates confirming each tenant's terms and that no disputes exist, and often subordination, non-disturbance and attornment agreements where a lender is involved. Gathering these from tenants is frequently the longest item on the schedule.

Survey and zoning

Commercial buyers usually order an ALTA/NSPS survey, which is far more detailed than a residential one. Zoning endorsements confirming permitted use are common, and on some properties a zoning letter from the municipality is required.

Environmental

Not a title matter as such, but it sits alongside. Phase I assessments are routine on commercial acquisitions, and findings can affect both financing and the endorsement package.

Endorsements

Residential files use a handful. Commercial files can carry a dozen — comprehensive, survey, zoning, access, contiguity, tax parcel, usury, doing business. Each addresses a specific risk and each carries a charge, so the endorsement schedule is worth reviewing rather than accepting wholesale.

Timelines

Sixty to ninety days is unremarkable. The search is rarely the constraint — tenant estoppels, entity documents and lender requirements usually are.

Both states

We handle commercial files in Pennsylvania and Alabama. Send us the contract and we will scope it properly rather than quote blind.

Note: general information for Pennsylvania and Alabama property owners, not legal or tax advice. Rates, taxes, eligibility and deadlines are set by statute and by each state’s filed rate schedules and can change. Confirm the specifics with us and with a qualified professional before relying on them for a transaction.