As a buyer, an escrow service company can essentially light a fire under the seller to ensure they do what needs to be done in order to complete the process of a sale. For example, let’s say you were buying a house from the previous owner and you agreed that they would pay to put a new roof on the building as part of your purchase agreement. Closing day comes, and you find out they never had the new roof installed. The sellers say they didn’t have time to fix it, and you can either buy the house as is, or they’ll move on to a different buyer. Now you’re stuck because they didn’t hold up their end of the bargain.
That wouldn’t fly with an escrow company during a commercial purchase. For starters, we can clearly lay out what needs to be done by both buyer and seller by a specific date in order for a sale to move forward, and the potential penalties for failing to uphold your obligations. Surveys may need to be conducted and repairs may need to be made, and your escrow company can work with both parties to help ensure they are doing what needs to be done by closing. Our team helps keep the sale on track so that everything goes as planned with the sale.
It’s not uncommon for issues to come up during the due diligence period that need to be managed, and again this is where an escrow company comes into play. Not only can many of these issues be avoided with smart language in the purchasing contract, but they can also help to settle disputes between buyer and seller. For example, let’s say an issue was unexpectedly discovered during a survey or an inspection, and the buyer wants the seller to pay for the necessary fixes, while the buyer believes the seller should assist with this unforeseen cost. The escrow company can try to broker an agreement that both sides find amenable so that a small issue doesn't snowball and jeopardize the entire sale. Sometimes all it takes is an outsider’s perspective to give vested parties a more objective opinion on a matter, and that can make all the difference in the process of a sale.
Let us be your safety net and your middleman if you are considering putting an offer on a commercial property. For more information about our commercial escrow services or the other benefits we bring to the table, give the team at Commercial Partners a call today at (612) 337-2470.