What to Know About Commercial Real Estate Transactions Involving Bridge Loans

06/02/2026 10:19 AM       Mark Goodman

It’s not uncommon for commercial investors to buy and sell commercial assets more freely than residential homeowners, and they don’t always have the capital on hand to secure their next purchase. They want to strike when they see opportunity, but they know that in order to do so they’ll need to sell a different property to purchase the property or as part of a downpayment. If they buy the commercial asset before selling another asset, they may need to apply for what’s known as a bridge loan. 

A bridge loan is a type of loan that acts as a “bridge” between the time when an individual purchases a property and sells another. These short-term loans are designed to be paid off quickly, and because you can secure them in short order, they tend to have higher interest rates than a standard mortgage. This isn’t really an issue if it provides you with the opportunity to secure a valuable asset and you know you’ll soon have the capital to pay off the loan without incurring much in the way of fees, but sometimes delays with a sale can force you to hold that loan longer than you’d like, forcing to you incur these high interest rates. A title concern with a property you are selling is the most common issue that delays a sale, so you’ll want to avoid them if at all possible. 

The single best way to do that is by connecting with a title services company like Commercial Partners. 

Benefits of Working with a Title Company

You may have a property that you want to sell and buyers ready to make offers, but if there are outstanding defects on your title, it can take months to clear things up, forcing you to hold the bridge loan longer than you would like. Some common issues that can cloud a title include: 

• Tax liens 

• Mechanic’s liens 

• Disputed wills 

• Boundary concerns 

• Encroachments and easements 

• Unclear property records and title information 

Your property will need to be vetted for these potential issues, and they may be discovered despite your reassurance that everything is clear with your title. They typically aren’t a major concern if they are discovered early, especially by a title services team who knows how to get rid of them. For example, getting a confirmed receipt of payment from a contractor or removing a fence that was incorrectly positioned on a neighbor’s lot may be all that’s needed to solve the title problem, but if you aren’t aware of them until days before closing, these issues can cause delays. Bringing a title services company into the fold as soon as possible if you’ve secured a bridge loan is essential for keeping your sale on track and receiving the funds needed to pay off that short-term loan. 

We work quickly, but we are also very thorough about what we do to ensure nothing unexpected arises that could delay or derail a sale. We know that time is of the essence for our clients, and our industry expertise allows us to act quickly and correctly to complete countless necessary processes prior to closing. Let us help keep your closing on track so that you can have access to the funds from the sale. 

For more information about connecting with a title services partner if you’ve secured a bridge loan or you simply want to keep your purchase or sale on track, give the team at Commercial Partners a call today at (612) 337-2470.