Grace period on monthly payments in CRE? (Oregon — seller financing)
In the process of selling my small commercial building. I am carrying the note. Payment will be due on the first of the month. Nothing in the documentation about grace period. In residential real estate there is a two-week grace period. Does that also hold true for commercial real estate?
[{"id": "isbftzi", "text": "Commercial loan terms vary so much, you'll have to read your loan or call your lender and ask.  None of my commercial loans give me a grace period that I am aware of.  Good luck!", "replies": [], "depth": 1}, {"id": "isbjl4n", "text": "There are a lot of reasons for a grace period. One is transit and processing times. \n\nSomeone hands you a check on the first are you going to try and charge a late fee if you don't deposit it by EOB? What if it's sitting in your mailbox? What if the first is a Sunday or holiday? Building in a 5-7-10 day grace period eliminates most of these issues because by the time the grace period is up the payment is pretty clearly/explicitly late.\n\nAlso make sure you actual get your note drafted by a competent attorney. Negotiable Instruments are slightly different contracts and state specific so you can really hang yourself messing it up on the front.", "replies": [], "depth": 1}, {"id": "isdcfj5", "text": "No grace period. But that\u2019s not common on owner finance deals. Did you specify no grace period in the LOI?", "replies": [{"id": "ise1uqq", "text": "It was not addressed", "replies": [], "depth": 2}], "depth": 1}]