Common Time Length from Contract to Close?

2 Replies

Hi All!

I have my first commercial property under contract, and we are getting closer to a close date, however things still keep "popping" up last minute on the bank end. More Forms, Environmental Inspections, etc. Right now, I have been under contract with this property since May of 2018.

My questions are as follows:

1 - Is 3-6 Months a typical timeline to get financing in place/closing date for a commercial property from a bank, or am I working with a not-so-great lender?

2 - Is it common for the RE agent representing the buyer/seller to be anxious and annoying during this process when continuing to request extensions?

3 - Is there a process involved if money has been spent and seller does not want to renew purchase contract?

Trying to find the lay of the land here and know who to cut out of the picture for the next purchase.


@Chris Branca Hi Chris, congrats on getting your first commercial property under contract!  There can be a ton of paperwork, and some banks can get caught up in bureaucracy, but environmental inspections, appraisals, any other "Phase 1's," etc. are all standard.

1 - I'd say 60-90 days is a generous closing period for a property & buyer both with good records and have their ducks in a row.

2 - Of course.  Their paycheck is on the line, and if your financing falls through, they just wasted 4 months of time not advertising to buyers that can potentially close.  This is why brokers love "cash offers."  Do your best to keep the broker updated.  BCC them on emails if you're comfortable doing so.

3 - This is something that should be outlined in your contract.  Sometimes they will charge a fee to extend the window, but the seller should be just as anxious as you are to get this deal done.  I don't see why they would cancel the deal if you're at the finish line and just need an extra week.

A good portion of a Mortgage Broker's job is expediting this process and keeping everyone in check.  I'm obviously bias here, but it may be something to consider for your next deal.

Good luck,


It depends on the lender. If you are getting some amazing terms then lenders price in risk and will want umpteen million documents and be very conservative. If the loan is a lower LTV and more standard terms then lenders can get more lax in requirements as their is security in other ways such as high DSCR, low leverage where loan is much less than current value of the property etc.