Commercial Property Under Contract

[Brandon G.]

Hello,

There is a commercial property I am looking to get under contract, pending financing, to build a self-storage facility and have a few questions.  Is it typical to put down a deposit to get a piece of property under contract?  As the buyer of a piece of land, with nothing on it, for commercial use, what is typical of costs that the buyer will be responsible for?  Half of closing costs, etc?  If there is a deposit ($2,000 is what the owner has suggested) for getting under contract and I am for some reason unable to get financing, I presume that payment is completely lost, correct?

Thank you,

Brandon

[Ronald Rohde]

You really need a commercial broker or attorney to walk you through this.

Let me try to answer:

1. Yes, typical downpayment

2. 5% of purchase price, title, escrow, filing, recording, doc prep, taxes

3. it depends on your contract, the language can go either way.