There are many things to remember when dealing with commercial real estate escrow agreements. In this article, we are going to discuss four things to keep in mind when working with escrows in a commercial real estate transaction.
Escrow Agreements
Below are four essential things to keep in mind when you’re working with escrows in a commercial real estate transaction:
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Identity of All Involved Parties. It’s important that all of the parties involved in the escrow agreement are property identified and that each party understands their obligations.
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Requirements & Resolution. Escrow agreements need to be as precise as possible when it comes to the requirements that need to be met by all parties in order for it to be resolved. You also need to consider alternative resolution options in the event that one party fails in their obligations.
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Disbursement of Funds. You’ll also want to map out how any remaining escrow funds (should they exist) be disbursed.
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Date of Termination. It’s not a good idea to allow an escrow to go on in perpetuity. There should be a set date of termination, and precise instructions for what to do if any obligations have not been met.
Parter with the Experts in Commercial Real Estate Transactions
If you’re embarking on a commercial real estate transaction, partner with the industry experts at Commercial Partners Title Company. We work with clients throughout the United States on commercial title transactions big, small, and everything in between. Let our team of closers, title searchers, and escrow agents help guide you through your next transaction. Our primary office is in downtown Minneapolis. You can give us a call and set up a time to chat with one of our team members there today!