Closing costs are the various fees and expenses incurred during the finalization of a real estate transaction, often including charges such as loan origination fees, appraisal fees, title insurance, and escrow deposits. These costs can be negotiated between the buyer and seller, with each party potentially responsible for certain expenses as outlined in the purchase agreement.
On September 3, 2021, the Company completed the sale of Granite Tower for $203.5 million, or $174.1 million net of credits given to the purchaser primarily for outstanding tenant improvements and lease incentives, before third-party closing costs of approximately $1.0 million and excluding disposition fees payable to the Advisor. In connection with the disposition of Granite Tower, the Company repaid the entire $95.4 million principal balance and all other sums due under a mortgage loan secured by Granite Tower.
(b)Represents adjustments to reflect the disposition of Granite Tower. The aggregate liquidation value, net of estimated closing credits, of Granite Tower was $174.8 million, excluding estimated closing costs.
(c)Represents the amount of net cash proceeds from the disposition of Granite Tower, based on the gross sales price of $203.5 million and reduced by the $95.4 million of debt outstanding due under the Granite Tower Mortgage Loan, and net of closing credits, closing costs, the disposition fee and rental security deposits.
Further, the per unit NAV was calculated as of a moment in time, and, although the value of the Trust’s units will fluctuate over time as a result of, among other things, developments related to individual assets, sales of additional assets and the payment of fees and closing costs in connection therewith, changes in the real estate and capital markets, and the distribution of sales proceeds to the Trust’s unitholders, the Trust does not undertake to update the per unit NAV on a regular basis. As a result, unitholders should not rely on the per unit NAV as an accurate measure of the then-current value of the Trust’s units.
On July 9, 2019, Clearwater LA Fitness acquired the LA Fitness Center in Oakbrook, Illinois for approximately $15,511,026. After pro-rations and closing costs, the acquisition was financed using (i) $6,241,159.32 in cash, and (ii) notes to KeyBank National Association in total principal amount of $9,269,866.35 with the maturity date on July 9, 2022. The note is secured by the property and a limited recourse guaranty of an individual related to the Manager.
On June 23, 2022, the Company, through LM Development entered into a Purchase and Sale Agreement, subsequently amended on January 3, 2023, to sell a portion of the rental property. On February 16, 2023, the Company sold this rental property for $740,000, paid closing costs of $49,542 and received net proceeds from this sale of approximately $690,468. The Company realized a gain on disposition of this portion of the Property of $587,406.
Vancouver Property On March 29, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Vancouver, Washington (the “Vancouver Property”) for a purchase price of approximately $25.0 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering. Subsequent to close we encumbered this property on the Huntington Credit Facility.
Portland Property On March 31, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Portland, Oregon (the “Portland Property”) for a purchase price of approximately $15.0 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering. Subsequent to close we encumbered this property on the Huntington Credit Facility.
Newark Property On April 26, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Newark, Delaware (the “Newark Property”) for a purchase price of approximately $19.7 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering and a draw on the Huntington Credit Facility.
Levittown Property On April 26, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Levittown, Pennsylvania (the “Levittown Property”) for a purchase price of approximately $21.0 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering and a draw on the Huntington Credit Facility.
Chandler Property On May 17, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Chandler, Arizona (the “Chandler Property”) for a purchase price of approximately $25.5 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering and a draw on the Huntington Credit Facility.
Burlington Property On September 20, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Burlington, Ontario (the “Burlington Property”) for a purchase price of approximately CAD $35.5 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering and a draw on the National Bank of Canada - Burlington Loan.
Oxford Property On September 21, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Oxford, Florida (the “Oxford Property”) for a purchase price of approximately $10.9 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering and subsequent to close we encumbered this property on the Huntington Credit Facility.
ambridge Property On December 20, 2022, the Company acquired a self storage facility from an unaffiliated third party located in Cambridge, Ontario (the “Cambridge Property”) for a purchase price of approximately CAD $36.0 million, plus closing costs and an acquisition fee. The purchase was funded with net proceeds from our offering and a draw on the National Bank of Canada - Cambridge Loan.
On March 30, 2023, the Company completed the sale of Union Bank Plaza to the Purchaser for $104.0 million, before third-party closing costs of approximately $1.1 million and excluding disposition fees payable to the Advisor.
For the three months ended June 30, 2022, represents costs related to the Business Combination, transaction and post-closing costs related to acquisitions, and other non-operating, non-recurring costs including $2.7 million of other non-operating, non-recurring costs, $3.1 million of reorganizational costs, and $1.2 million of acquisition-related expense.
For the six months ended June 30, 2022, represents costs related to the Business Combination, transaction and post-closing costs related to acquisitions, and other non-operating, non-recurring costs including $5.9 million of other non-operating, non-recurring costs, $5.3 million of reorganizational costs, and $3.2 million of acquisition-related expense.
Further, in some instances, we offer the customer an incentive which can be used by the homebuyer to reduce the closing costs they owe to a third party. These closing costs are in addition to closing costs that the Company itself is obligated to pay to a third party in respect of a home sale. The majority of the closing costs paid are the Company’s obligation and the amount of closing costs paid on behalf of customers is insignificant; therefore, we do not separately account for these amounts as a reduction of the homebuilding revenue. We account for these amounts as costs of sales, along with the amounts the Company is obligated to pay to the third party. As the amount of closing costs the Company has historically paid are not material, the Company does not believe it is meaningful to include disclosure of the accounting treatment or such amounts related to these closing costs. However, if the amounts become material, the Company will include such disclosures in its future filings.
If you own a cooperative apartment which does not qualify for purchase by SIRVA, you should follow the Home Marketing Assistance procedures and list your home according to the marketing strategy (and program requirements). Your SIRVA Relocation Consultant will advise you with regard to negotiating/accepting an offer. However, when you receive an acceptable offer, you should conclude the sale directly with the buyer. You will be reimbursed normal and reasonable closing costs (as determined by Brighthouse Services, LLC in its sole discretion) which are customarily paid by the seller, and which must be substantiated by a HUD-1 form or other similar documentation. For a cooperative apartment, up to 6% commission will be paid along with $1,000 in advertising costs.
The direct reimbursement of closing costs is taxable, and will be included in your taxable wages reported on your Form W-2. This payment will be grossed-up for taxes as described in the Taxes section.
Closing costs are the fees and expenses that a buyer and seller encounter during the finalization of a real estate transaction, also known as the “closing”. These costs typically include fees for the loan origination, appraisal, title insurance, and various government recording fees, among others. They are a crucial part of the home buying process and are often split between the buyer and the seller, depending on the terms of the purchase agreement.
You should consider closing costs anytime you are involved in a real estate transaction, whether you’re the buyer or the seller. As a buyer, you typically encounter closing costs when applying for a mortgage and finalizing the purchase of a property. As a seller, you may need to cover certain closing costs to facilitate the transaction and transfer ownership to the buyer.
When writing about closing costs, especially in legal or contractual documents, it’s important to specify the types and amounts of these costs, as well as who is responsible for paying them. Here’s an example:
Closing Costs: Buyer agrees to pay all closing costs including, but not limited to, loan origination fees, appraisal fees, and title insurance. Seller agrees to pay all costs associated with the title search and deed preparation.
Clearly outlining the responsibilities for each party helps prevent misunderstandings and disputes during the transaction process.
Closing costs are predominantly found in real estate purchase agreements and mortgage agreements. They are detailed in these contracts to outline the financial responsibilities of both the buyer and the seller. Additionally, closing statements, such as the HUD-1 Settlement Statement or the Closing Disclosure in the United States, will also contain a breakdown of all closing costs involved in the transaction. These documents ensure transparency and provide a comprehensive view of the fees and charges to both parties.
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A commencement letter is a formal document issued to officially notify the start date of a contract or project, ensuring all involved parties acknowledge and agree on when obligations and responsibilities are to begin. It typically confirms the acceptance of terms outlined in the contract and may include additional details pertinent to the initiation of services or work.
The "Company Rules and Regulations" clause typically outlines the expected standards of behavior, procedures, and guidelines that employees must adhere to while working for the company. It serves to ensure consistency, safety, and compliance within the organization and can include aspects such as attendance, dress code, and conduct.
The "Compensation and Payment" clause outlines the terms under which the party providing services or goods will be remunerated. It details the agreed payment amount, schedule, method, and any conditions for adjustments, ensuring clarity and mutual understanding between the contracting parties.
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