A commercial real estate purchase is the purchase of property intended for use by a business entity or individual for the sole purpose of making a profit. Some examples of large commercial real estate may include a shopping center, an industrial park, commercial farmland or large-scale multi-family dwellings. Commercial real estate transactions require much more capital and take longer to complete. At First Guardian, we stick to smaller commercial transactions for the sale or refinance of small office spaces or commercial condominium units, usually found within larger office complexes. For commercial transactions, the available loan types, interest rates, and payment plans also vary from those offered to residential buyers. These transactions are often more complex than residential purchases, so relying on a commercial real estate agent is highly recommended.
The lender usually requires a buyer of commercial real estate to purchase Lender’s Title Insurance. This insurance protects the lender’s financial investment. Owner’s Title Insurance is also recommended for the entities purchasing the property. This insurance will protect the business from loss of income as related to the Title of the property. Learn more about Title Insurance from First Guardian Title and Escrow.