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| Thursday, September 09, 2010 |
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The process of buying commercial property is demanding. You know there's a lot of paperwork involved after the contract for sale is executed. There are also a lot of different disciplines involved. Escrow Agents, Attorneys, Lenders, Appraisers, Contractors, Architects, Maintenance, Environmental and Seller Agent to mention a few. Then there is DUE DILIGENCE. Here the Buyer is involved with Property Inspections, Service Contracts, Tenant Histories, Leases, Estoppels, SNDA's, Phase I and II Environmental Reports and Appraisals are a good start. If you take a little time exploring this Web site, however, you'll find answers to many of your questions, and hopefully the buying process will be made easier.
Please Excuse my dust - Web Site under construction
One of the most important things is that you have a checklist for Due Diligence in the acquisition of commercial property. By keeping on top of your game-plan at all times you will greatly increase your chances of success. To save time, bookmark this page and refer to the following checklist frequently. You can also print out this checklist and let it increase your purchase effectiveness.
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SUBMITTAL PACKAGE REVIEW AND APPROVAL |
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Printed Project Brochure and / or Seller Sale Package |
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Photographs of Property and Area |
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Chamber of Commerce Date |
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City Map |
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Site Plan |
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Physical Description of Property (Listing Amenities) |
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Complete Rent Rolls |
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List of Security Deposits |
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LETTER OF INTENT |
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Prepare Letter |
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Submit to Seller |
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WITH SELLER ACCEPTANCE |
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On-Site Inspection with Completion of following items: |
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Building Permits, Operating Licenses, Notices of Completion, Occupancy Permits (CO”s), Soil Reports and Termite Reports. |
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List and Copies of Service Contracts (Verbal and Written) |
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Comparables and Market Survey |
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Pre-Shop Project |
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Complete Lease Analysis Breakdown |
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Standard Form Lease and Copies of All Leases and Rental Agreements and Any Amendments/Assignments thereto |
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Current Name, Address and Phone Number of Tenants, Lessee’s and Parent Company Where Applicable and Financial Statements |
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Copies of Insurance Policies |
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On Site Conversations with Tenants, Check of Records and Occupancy |
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List of Employees, Wages and Job Description and Inventory of Personal Property |
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Copy of Utility Expenses for Preceding 12 Months (Invoices) |
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Where Applicable, Copy of Ground Lease |
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Copy of Loan Commitment, Promissory Notes, Trust Deeds or Mortgages and any other Loan Documents required by Lender |
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Preliminary Title Insurance Policy |
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Prepare List of Vendors and Utilities |
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Copy of Tax Statements for past Three (3) Years and Any Current Assessments |
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Property Financial Statements for Past Three (3) Years |
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Most Recent CAM, Tax and Insurance Billing, and Reconciliations for Each Tenant. Where Applicable, Sales Reports for Past Three Years for Each Tenant |
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Where Applicable, Check References of Seller and Review Portfolio of Seller’s Projects |
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Closing Checklist |
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APPROVAL PORCESS |
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Full Acquisition Package Presented to Buyer/Investor with Recommendation |
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With Buyer Approval, Completion of the Following: |
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Where Applicable, Appraisal, Audit, Construction Report |
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As Built Survey |
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Plat Map |
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Complete Set of Plans and Specifications |
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Renderings |
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List of Capital Improvements in Last 12 Months |
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Advance Bid on Insurance Proposal |
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List of Current and Potential Deferred Maintenance Items |
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Check Local Brokerage & Management Laws |
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U.C.C.-1 Search |
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Please Excuse my dust - Web Site under construction
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