Residential vs. Commercial Closings: What’s The Difference?
Whether you’re a seasoned-pro at buying residential homes or have multiple business locations, there are plenty of differences throughout the selling, buying, and closing process that many people don’t realize and are sometimes unprepared for. That’s why our legal team here at Grand Strand Law Group has come up with a few major differences between residential and commercial closing that we think you should know!
One of the main differences between residential and commercial closings is the purpose of buying. Residential properties are purchased to house families, while commercial properties are purchased, sold, or leased for business purposes.
Residential closings are systematic and regulated from home to home usually involving just two main parties, the buyer and seller, alongside a realtor, closing attorney, etc. Commercial closings can get complex due to the number of people involved with the sale (buyers, sellers, attorneys, real estate agents, corporate members, board members, etc.).
Regulations & Contracts
Similar to commercial closings, residential closings have to follow the Real Estate Settlement Procedure Act (RESPA), a federal law that states to provide homebuyers and sellers with complete settlement cost disclosures. While commercial closings don’t have to follow RESPA, they do require more due diligence because they have to follow zoning rules and other city and state regulations. Overall, both types of closings require an attorney to provide a contract before the closing can happen and the sale is final.
We understand this may seem like a foreign language to some, but our team at Grand Strand Law Group works with you step by step throughout the closing process, leaving you with a stress-free and pleasant experience! Our legal team is here to answer any questions you may have regarding residential and commercial closings! Don’t hesitate to contact us.