Those refinancing or purchasing commercial property must make special considerations before closing. Every transaction is different, and Real Estate Litigation Nassau County NY can be complex. Below are a few tips to help buyers prepare for closing.
Learn the Lender’s Requirements
Every lender has special requirements for certain transaction types. Even if a buyer frequently refinances commercial properties, they should learn the lender’s requirements each time. In some instances, a buyer may need to act quickly and decisively to meet those requirements by the closing date. Some lenders list a survey as a loan prerequisite, while others have no such requirement. A lender’s requirements may vary according to the transaction amount, and a lawyer’s help can prove invaluable in these cases.
Don’t Wait for Tenants to Sign Subordination Agreements
If a buyer is refinancing or purchasing a space including multiple tenants, they should learn the lender’s subordination agreement requirements. Most lenders require tenants to sign an SNDA (subordination, non-disturbance, attornment) document, which lists the terms of the tenant/lender relationship in the event of a foreclosure, default, or Real Estate Litigation Nassau County NY.
Get an Opinion of Counsel Letter if Necessary
If the loan is of sufficient size, the lender may require a counsel letter. This simply means the lender wants an attorney to review documents to ensure validity and provide a letter of opinion. The process can take a significant amount of time and add to the borrower’s expenses. Visit here to know more.
Gather Lien Waivers
It can take a substantial amount of coordination and effort to acquire lien waivers for commercial properties. However, the buyer must get these waivers from all contractors who delivered materials or performed work in the four months before closing. Lien waivers are legal documents in which contractors state that they have received full payment for their work and they waive the right to put a lien on the property. It can be difficult to track all work done on a commercial property, but a lawyer with Business name can help a client get waivers from the appropriate parties before Real Estate Litigation Nassau County NY becomes necessary.