I think a lot of owners avoid selling because the process feels like a black box. You accept an offer and then… what? Three months of lawyers and paperwork and surprises?
It doesn’t have to be that way. Let me walk you through what actually happens when you sell a commercial property to me. It’s way simpler than most people expect.
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Prepare Rent Roll and Lease Copies: Buyers order rent roll verification. Have current, clean rent rolls and lease copies ready. Discrepancies slow closing. -
Gather All Building Permits and Improvements: Roof replaced in 2010? HVAC in 2015? Asphalt paving in 2018? Have dates and contractor info ready. Buyers want proof of capital work. -
Know Outstanding Liens or Issues: Property taxes, HOA fees, special assessments. Get a preliminary title report early so surprises don’t hit 3 weeks before closing. -
Coordinate Tenant Notifications: Most P&S agreements let buyers notify tenants. Plan for that. Tenants asking you questions about new ownership is normal. -
Arrange Move-Out Timeline: If you have personal items at the property, plan removal. Most closings happen during business hours, not after-hours.
Week 1: Contract and earnest money
Once we agree on a price, I send over a purchase and sale agreement. It’s pretty straightforward. Purchase price, earnest money deposit (usually 1-3% of the price), due diligence period, closing date. My attorney drafts it. Your attorney reviews it. We sign. I wire the earnest money to the escrow agent.
Why commercial closings stall
A commercial sale contract has a 30-45 day close timeline. But 70% of delays come after Week 3, when the buyer’s financing is supposed to be locked. Construction loans and portfolio loans move slower than residential mortgages. Lenders ask for updated financial statements, revised rent rolls, environmental reports, and Phase II assessments. Weeks 3-4 are where time gets lost. As a seller, you can’t control lender timelines. But you CAN have all your documentation ready so the buyer’s lender doesn’t stall waiting for building history or lease paperwork.
This part usually takes 3-5 business days. I’ve seen it happen in one day when both sides are motivated.
Weeks 2-3: Due diligence
This is the part that scares sellers. But when you sell to a direct buyer like me, it’s way less painful than a brokered deal.
I’ve already seen the building. I’ve already underwritten the numbers. I’ve already priced in the roof condition and the parking lot and whatever else needs work. So due diligence for me is mainly confirming what I already know. I’m ordering a title search, reviewing the existing leases, checking for any environmental red flags, maybe getting an updated survey if the existing one is old.
I’m not going to come back after three weeks and try to re-negotiate the price unless I find something genuinely unexpected that wasn’t disclosed. That’s not how I operate. The price I agree to is the price I close at.
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Weeks 3-4: Title and closing prep
The title company clears title, prepares the closing documents, and schedules the closing. If you have existing mortgages, they coordinate the payoff. If there are any liens or encumbrances, they get resolved. Your attorney and mine review the settlement statement so there are no surprises at the closing table.
Closing day
Sign the deed. Sign the settlement statement. Keys get handed over. I wire the proceeds to your account. Usually same day or next business day.
The whole process, start to finish: 30-45 days. Sometimes faster if title is clean and there aren’t any complications.
What makes it slow
Title issues. Old liens, boundary disputes, easement problems. These can add weeks. Environmental issues that require additional investigation. And honestly, sellers who are slow to provide documents. Lease copies, rent roll, insurance certificates, tax returns. The faster you get me that stuff, the faster we close.
Seller takeaway
If you’re considering selling a commercial property and want to understand the timeline and what to prepare, call Roth Capital at 704-600-3839. Jim Kittridge will walk you through the process and tell you how to organize your documents for a smooth 30-45 day close.
I buy commercial property across Raleigh, Greenville, and the rest of the Carolinas. If you want to know what the process looks like for your specific property, call me. No obligation. 704-600-3839.
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