Demystifying Commercial Property Closing Costs: What to Expect in the 75 to 90-Day Range

Apr 19, 2024

When it comes to closing costs for commercial property transactions, there can be a lot of confusion and uncertainty. Buyers and sellers alike often find themselves wondering what to expect during the 75 to 90-day range leading up to the closing date. In this blog post, we will demystify commercial property closing costs and provide a breakdown of what you can anticipate during this crucial period.

Understanding Commercial Property Closing Costs

Commercial property closing costs are the fees and expenses associated with the transfer of ownership from the seller to the buyer. These costs can vary depending on the specific transaction, location, and parties involved. It's important to note that both buyers and sellers typically have their own set of closing costs.

Buyer's Closing Costs

As a buyer, you can expect to incur various closing costs during the 75 to 90-day range. Some of the common buyer's closing costs include:

  • Appraisal fees
  • Inspection fees
  • Survey fees
  • Loan origination fees
  • Title search and insurance fees
  • Attorney fees
  • Escrow fees

These costs are typically outlined in the purchase agreement and are the responsibility of the buyer. It's essential to budget for these expenses to avoid any last-minute surprises.

Seller's Closing Costs

On the other hand, sellers also have their own set of closing costs to consider. Some of the common seller's closing costs include:

  • Real estate agent commissions
  • Transfer taxes
  • Attorney fees
  • Outstanding mortgage balances
  • Prorated property taxes

These costs are typically deducted from the proceeds of the sale. It's important for sellers to understand their financial obligations and factor in these expenses when determining their desired sale price.

Timeline of Closing Costs

The 75 to 90-day range leading up to the closing date is a critical period for addressing closing costs. Here's a general timeline of what to expect:

  1. Initial Offer: The buyer and seller negotiate the terms of the purchase agreement, including the allocation of closing costs.
  2. Property Inspections: The buyer conducts inspections and assessments to identify any potential issues or necessary repairs.
  3. Loan Application: The buyer applies for a commercial loan, which may include loan origination fees.
  4. Appraisal and Survey: The property is appraised to determine its value, and a survey may be conducted to verify boundaries.
  5. Title Search: A title search is performed to ensure there are no outstanding liens or ownership disputes.
  6. Negotiations: If any issues arise during inspections, appraisals, or title searches, negotiations may take place to address these concerns.
  7. Finalizing Loan: The buyer's loan is finalized, and the lender may charge additional fees for processing and underwriting.
  8. Closing Preparation: The buyer and seller work with their respective attorneys and agents to prepare all necessary documents for the closing.
  9. Closing Day: The buyer and seller meet to sign the final documents, and the transfer of ownership is completed.

Throughout this timeline, it's important to communicate with your real estate agent, attorney, and other professionals involved in the transaction to ensure a smooth closing process.


Closing costs are an integral part of any commercial property transaction. By understanding the various costs involved and the timeline leading up to the closing date, buyers and sellers can better prepare themselves for a successful closing. Remember to consult with professionals who specialize in commercial real estate to ensure you have a comprehensive understanding of the specific closing costs associated with your transaction.