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Updated over 6 years ago,
Question about an Industrial property purchase - Please help
I have a good friend that is looking to purchase a industrial property for their iron rebar business. There is a property that they like and it is currently in escrow but according to the listing agent it looks to be falling out. The listing agent said that there is a completed Phase 1 ESA but that now a Phase 2 is needed. He said the cost of the Phase 2 assessment is $6K and the buyer would need to pay the entire amount.
(Here is a good time to say that my 25 years of experience is in residential sales, mortgages, and property management; I have very little commercial experience to speak of.)
My questions are:
1. Is it normal for a buyer to pay the entire cost of the Phase 1 and/or Phase 2 report? Is this usual negotiable, or are there some customary splitting of costs between Buyer and Seller? The property is listed just under $800K.
2. How are commissions on commercial sales determined, does the Seller or Buyer or a combination of them pay commissions or is it just part of the offer negotiations?
Any insight would be great, thank you!
James