AVERAGE CLOSING COSTS ON COMMERCIAL PROPERTY
What are the closing costs on a commercial property?
When you talk about closing costs you should include whatever costs you will incur to finalize the successful purchase of a commercial property. Therefore beside the closing cost such as property taxes and legal fees which your lawyer can provide you with, when you are purchasing a commercial property, most likely you will need to keep in mind that you may need to get an appraisal which can cost from $2500 and higher depending on the property. You may also need an environmental Phase 1 report which may cost anywhere from $3,000 and higher. Sometime you many need a Phase 2 report which will go from $10,000 to higher amounts. Inspection reports can also be more expensive from $1200 and higher. Finally don’t forget that in some commercial transaction you may have to pay HST on the price of the property. These reports often are required by the bank or the lender in order to give you a final approval on your commercial mortgage.
AVERAGE COSTS TO CLOSE A DEAL FOR A COMMERCIAL PROPERTY
- Inspection report – from $1200 to higher amounts
- Appraisal report – from $2500 to higher amounts
- Phase 1 report if needed – from $3,000 to higher amounts
- Phase 2 report – if needed – from $12,000 to higher
- HST fees may apply
- Closing costs including property taxes, legal fees and others
“Keep in mind that the fees involved in purchasing a commercial property can be substantially higher then a residential deal.”