Commercial Escrow Services

Commercial real estate deals are complex.  There are corporations instead of private people, zoning laws, and a plethora of red tape when transferring corporate assets.  If a party gets cold feet that does not mean escrow funds can be returned, and only a professional escrow service will know how to navigate these situations.  As an ALTA member, we have the professional escrow agents ready to handle even the most complex situations to keep your commercial real estate deal in motion.

Once the deal is finalized and inked, the funds can be released.  This normally happens within 2 business days and the funds will show up in the account you specified with the commercial escrow company.  Each bank is unique so the time it releases to the time it appears can vary.  Check with your bank to see what their policies are.

Commercial escrow fees normally range from 1% to 2% of the total sale price.  Depending on the length of time, complexity of the deal, and the price, these fees can sometimes be negotiated up and down.

No, legally you are not required to hire an escrow company for commercial real estate transactions.  But if you do not use one you may find yourself in tricky situations.  Without an impartial third party you are not protected for the release of funds after you sign the deal meaning you may wind up in a pricey legal battle to get paid.  And there is no neutral third party to verify all forms are correct as a final set of eyes to make sure the property transfers smoothly.  Good commercial escrow companies make sure the forms are correct before they release payment and it is too late to recover a loss. 

The money paid by the corporation purchasing the commercial property owns the escrow funds until the funds are released. This is because the sale has not been finalized and the assets have not been transferred to the other party. Assets include the property and the funds.