What are the typical closing costs in a commercial real estate transaction?

Closing costs in a commercial real estate transaction typically include both buyer and seller costs. Common buyer costs include loan origination fees, appraisal fees, title insurance, inspection fees and survey fees. The buyer may also be responsible for recording or filing fees, attorney fees, and points (up-front fees in exchange for a lower interest rate). From the seller’s perspective, common closing costs include commissions, payoffs (for existing loans), prorated taxes, transfer taxes and closing costs. Additionally, the seller may be responsible for environmental reports and surveys, document preparation fees, attorney fees, and termite inspection fees. There are other, less common closing costs associated with commercial real estate transactions, depending on the particular property and market. For example, if the buyer is assuming existing debt, the buyer may need to pay discount points on the loan. Additionally, some states (including Virginia) may require buyers to pay a conveyance tax on any real estate transaction. It is important to note that the total amount of closing costs may depend on the parties involved, the size of the transaction, and the particular location of the property. For this reason, it is important for buyers and sellers to research and fully understand the costs associated with their particular real estate transaction.

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What are the typical closing costs in a commercial real estate transaction?

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