There are many documents involved in a commercial title transaction. One of the most important documents that a title company needs is the sources and uses statement. In this article, we are going to define what exactly a sources and uses statement is and why it’s important in a commercial title transaction.
Sources & Uses Statement
Often, the first document that you will need to provide your title company to begin the underwriting process is a sources and uses statement – also known as the project budget. This statement is basically just a list of the funds that are going to be utilized for the project, as well as where those funds are coming from. The sources and uses statement should include the following:
Plans and costs often change throughout the course of a project, which is almost an inevitability. The sources and uses statement should be updated whenever such changes are made. The reason this document is so important is that it helps the title company get an understanding of the scope of the project at hand.
Start Your Next Commercial Transaction with Commercial Partners
Commercial Partners Title Company has more than 200 years of combined experience. Over the course of decades, we’ve built a reputation as being experts in the field of commercial title insurance. That goes for transactions in the state of Minnesota where we’re located, as well as across the United States. No matter where your property is located, we can help with your commercial title underwriting needs. Contact our team of title insurance experts for help with the details of your next commercial real estate transaction.