Real Estate Transactions – Ten Tips for a Smooth and Efficient Closing Experience guest author: John T. Banjak
Verify that parties executing the sale contract are the “correct parties” – for example, make sure the party purporting to own the property is actually the “record title holder” and if the seller is a business entity, trust or other non-natural person, make sure the person signing the contract is the authorized representative of such entity.
Ensure all property is identified and referenced in the sale contract – most notably, in commercial transactions where the seller often owns more than one contiguous parcel and there is risk of not including all of the parcels in the actual transaction. Notifying the title company and surveyor of any adjacent parking lots or ingress/egress easements is important and will expedite the title research process.
Attach a “due diligence/contingency” chart to the sale contract to make sure that all parties – including third party vendors like the title company, inspectors and attorneys – all clearly note the various contingency/due diligence deadlines. Failing to respect contingency deadlines is a common obstacle to an effective closing process. Example: