Streamlining the Closing Process: Rules for Managing Transactions

Every real estate transaction is different – some are highly complex and others fairly simple, but for every closing there are three indispensable rules that can and should be followed to ensure a streamlined and successful closing process.

1. Control your documents. In modern, large-scale commercial real estate closings, it is quite unusual to have an actual in-person closing with all parties in attendance. More often than not, documents are sent via pdf, with original signature pages following by overnight delivery to an escrow agent (invariably a title company), who is charged with closing the subject transaction in compliance with escrow instruction letters sent by all parties.

To the extent possible, you must retain control over your documents to ensure that the latest negotiated revisions are finalized appropriately and that no inadvertent or intentional modifications are made by any other party in the transaction. Accordingly, when circulating documents for execution, be sure to pdf, and not forward finalized documents in word format. Additionally, you must always insist that signature pages on all documents be broken prior to execution by any party.