Illinois Commercial Property Sales Attorney

Are you in the market to sell commercial real estate in Illinois? The goal is always a successful closing experience for you and the purchaser. There are challenges and circumstances specific to commercial property, however, that can make commercial real estate transactions end in disarray and disappointment. The transactions, after all, involve sales prices that are much higher than residential real estate, so the stakes are higher. Much more local, city, and state information must also be researched and analyzed. It's a longer, more intricate process.

Contact Airdo Werwas, LLC, to schedule a consultation and learn more about selling commercial property in Illinois.

Understanding the Commercial Real Estate Selling Process

Commercial Real Estate (CRE) is property used for business rather than residential purposes. Selling CRE is a process that requires diligence and consistency. The following are six basic action items most states require for a successful commercial real estate transaction.

1. Determine the Selling Amount

Determining the amount the seller is willing to take for their property may take some work. There are numerous considerations, such as any lien amounts that will need to be paid off at or before closing, as well as the value of the property. If the property is being sold along with a business, the value of the business must also be determined. Finally, the listing price should leave some room for negotiation.

2. Enter into a Purchase Agreement

Once the seller and purchaser agree on the terms of the sale, a purchase agreement will be executed. This agreement should spell out all the terms of the agreement reached by the parties, including the obligations each party must carry out in order for the closing to run smoothly. Having a business attorney for corporations prepare the agreement is greatly beneficial. It is best if each side retains its own lawyer.

3. Comply with Purchaser Obligations

There may be certain requirements the purchaser must comply with to obtain the financing they need to purchase the property. This may include property inspections and appraisals. The seller will need to be considerate of these requests and comply with them so that the purchaser can meet their obligations under the purchase agreement.

4. Sign the Deed and Other Closing Documents

For the closing on the property to be complete, there are certain documents the seller will need to execute. This includes the deed and closing statement, as well as other documentation that may be required by the specific jurisdiction, including national, state, municipal, and local requirements. It is in the best interest of the seller to have their own attorney review these documents to ensure they know exactly to what they are, and are not, agreeing too.

5. Payoff Existing Liens

Although paying off the actual lien is a matter that may be handled by the closing agent, the seller needs to be certain the agreed-upon selling price is enough to pay any liens on the property as well as any other fees, like the amount owed to the real estate agents, the closing agent, and the attorney.

6. Hand-Over Property to Purchaser

Once all documents have been signed, and the money has changed hands, it is time for the seller to hand over the property to the purchaser. This includes the actual keys, security and alarm codes, and any other information the purchaser needs to get full use of the commercial property.

Essential Documents for Selling Commercial Property in Illinois

States vary as to what documents a seller must provide. Some of the more commonly required documents include:

• Deeds. The deed is the legal document that transfers ownership of a property from the seller to the purchaser. Every state has requirements regarding the proper way a deed should be executed to be valid.
• Assignments of Rights. In some situations, the business located on or in the CRE is also set to be transferred. When this happens, an assignment of rights is needed to spell out exactly what the seller is transferring to the purchaser.
• Disclosure Statements. Although not required in every state, a disclosure statement is the seller's way of legally disclosing to the purchaser any defects the property has.
• Property Access. Although not an actual document, the seller may be required to give the purchaser and their agents access to the property prior to the purchase in order to comply with the terms of the purchase agreement.

Obtaining an experienced real estate attorney to help identify the documents needed is very helpful for all parties involved.