Commercial real estate sales and refinance transactions are similar in most respects to residential transactions; however, there are significant differences. The staff of Maryland Trust Title is aware of these differences and is experienced at handling the various issues that often arise in closing commercial transactions.
For example, the amount of "due diligence" required by Purchasers and Lenders in commercial transactions is significantly greater than what is required in the typical residential transaction. Often, commercial transactions involve feasibility study periods during which environmental inspections are performed, the zoning classification of the property is determined, and other engineering studies are conducted. In addition, when one or more of the parties are legal entities like corporations or limited liability companies, the transaction must be authorized by a proper Resolution of either the Board of Directors of the Corporation or the Members of the Limited Liability Company. The settlement agent will need to review the Articles of Incorporation and By-Laws of the Corporation and the Articles of Organization and Operation Agreement for the Limited Liability Company to ensure that the Resolution was properly authorized and executed. Further, the Corporation or Limited Liability Company must be in "Good Standing" with the Maryland State Department of Assessments and Taxation. The legal status of a corporation or limited liability company can be checked by going to the SDAT website at www.dat.state.md.us.