The residential and commercial real estate markets in Miami are making a tremendous comeback from they were just a couple of years ago. There are many adjectives that can be used to describe the feeling of being a homeowner or becoming a property investor. Both of these situations provide solid foundations for an optimum financial future. However, these endeavors require a significant financial capacity to pay cash and even those that can have a firm understanding of leveraged finance and its significance.
Generally, most people obtain their commercial or residential loan through a reputable financial institution. However, the closing process can be tediously intricate if the proper steps aren’t followed. What’s worse, failing to have proper representation could potentially result in a venture that fails to take off. Although it’s not required to obtain business attorney representation for a loan closing or to act as your settlement agent, a real estate lawyer will give you the fiduciary peace of mind.
The Importance of a Real Estate Attorney
The residential loan closing procedure can vary, but the end result is typically the same. All of the financial minutiae regarding the purchase of a property and its title must be settled prior to the loan being made. A reputable real estate attorney representing you during the closing process will make sure that your investment objectives are attained and that there are no issues pertaining to the title.
You should sit down with your real estate attorney to thoroughly review the closing documents which include the mortgage itself, the mortgage note, and settlement statement, also known as the HUD. Your real estate attorney will explain what each of these documents mean and answer any questions you may have prior to you signing anything.
Commercial Loans
Commercial loans involve a significantly larger amount of paperwork than a residential loan, and they require an even greater amount of careful attention. A commercial loan’s requirements may include the following:
- Three years’ worth of recent operating systems showing operation income and expenses including scheduled capital improvements, their cost and their timing.
- Certified copies of Rent Roll and all leases.
- Tenant signed copies of Estoppel Certificates.
- An Alta lender’s policy including all required endorsements.
- Copies of all recorded documents that should remain as encumbrances after the closing. These include restrictions, easements, and related items.
- A Survey that is current, an Environmental Site Evaluation Report, and an Inspection Report.