Closing on a commercial real estate property isn’t just signing a few papers and getting the keys—it’s a complex process with multiple steps that can make or break a deal. Whether you’re buying or selling in Indiana, understanding what to expect can save you time, money, and a whole lot of stress.
Step 1: Negotiating the Purchase Agreement
Before anything closes, both parties must agree on the purchase terms. This involves:
- Price negotiation
- Due diligence timelines
- Contingencies (financing, inspections, zoning, etc.)
- Closing date
A well-structured agreement keeps surprises to a minimum.
Step 2: Due Diligence (a.k.a. The Deep Dive)
This is where buyers verify that the property is a sound investment. Due diligence includes:
- Property inspections to uncover structural or environmental issues
- Title review to confirm ownership and look for liens
- Zoning compliance to ensure the property fits its intended use
- Lease analysis (if tenants are involved) to confirm rental income
Step 3: Securing Financing
If financing is part of the deal, lenders will conduct their own due diligence, including property appraisals and financial audits. Expect a thorough review of:
- Income potential
- Market comparables
- Your financials and creditworthiness
Step 4: Final Walkthrough & Closing Disclosure
Just before closing, the buyer typically does a final walkthrough to confirm the property’s condition hasn’t changed. The closing disclosure outlines all final costs, including loan terms, taxes, and fees.
Step 5: Signing & Funding
At closing, all parties sign the necessary documents, funds are transferred, and ownership is officially recorded. Congratulations—you’ve closed!
Make Your Next Closing Smooth
The commercial real estate closing process doesn’t have to be overwhelming. If you need an expert to guide you through buying or selling in Indiana, let’s connect and get your deal across the finish line!
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