Commercial Real Estate Loan Commitment Letter Sample
Commercial Real Estate Loan Commitment Letter
[Name] [Address] [City], FL [Zip] Re: [Property Address]
Your application for the first mortgage Commercial Real Estate Loan on the referenced property described further in his letter has been approved by Lender in the amount of $ [Amount].
Interest Rate: [Interest Rate]
Commercial Real Estate Lender's Title Insurance is to be supplied at the borrower's expense insuring the first lien position by a title insurance company acceptable to Lender. Insurance: The mortgagor will provide all necessary casualty, liability and flood (if required) insurance in amounts sufficient enough to protect the mortgagee's interest. Survey: The borrower is to provide a current survey showing all easement of record.
Each year the borrower and guarantor will provide current financial statements by April 15 for the proceeding year end. Prepayment: The loan may be prepaid at any time without penalty.
The borrower is to pay all costs to close the transaction including the title policy, documentary stamps, intangible taxes, recording fees, lender's counsel and any other charges necessary to perfect on first lien position.
All loan documents are to be prepared by Commercial Real Estate Lender's counsel in a form and content acceptable to the lender and will contain all standard loan covenants appropriate to this type of transaction. No secondary financing will be permitted. The loan will be due and payable in the event of transfer of ownership through sale of the property or transfer of beneficial ownership in the corporation. The borrower will provide all necessary representation and warranties as required by Commercial Real Estate Lender counsel. Lender will require a Phase 1 environmental inspection confirming that none of the collateral for the loan is in violation of the federal, state, or local environmental laws, rules or regulations. In addition, the loan documents will require that the borrower and guarantor will indemnify, defend and hold harmless the lender of any loss as a result of any past, present or future use of the property that are in violation of any environmental laws, rules or regulations and will not permit the property to be used in violation of any such laws, rules and regulations. There has been no petition of bankruptcy or re-organization filed by borrower or guarantor. Lender will hold escrow funds for taxes and insurance. This commitment is subject to Lender's receipt of a current real estate appraisal by a Commercial Real Estate
Lender approved commercial real estate appraiser.
The appraisal amount must be at least [Appraisal Amount]. The borrower will pay the appraiser directly. If the above terms and conditions are acceptable please sign and return a copy of this letter no later than [Expiration Date]. This loan must close in forty five days from the date issued or it will become null and void.
Sincerely, LENDER Accepted by: