Commercial real estate transactions and acquisitions are a comprehensive process in which a checklist can help make sure the process goes as smoothly as possible.
Due diligence is part of every successful commercial real estate transaction. It is critical to have and review every important document necessary to evaluate and complete the commercial real estate acquisition.
Types of Commercial Real Estate
High-Rise Apartment Buildings
Single Tenant Office Buildings
Single Tenant Retail Buildings
Small Neighborhood Shopping Centers
Small Professional Office Buildings
Commercial Real Estate Transaction Checklist
1) Most recent title policy with all related documents.
2) Most recent American Land Title Association (ALTA) registered and licensed land survey and topographic study for the property.
3) Documents of construction blueprints and engineering plans.
4) Legal description of the property.
5) Zoning Compliance Certificate for the property and all zoning approvals, including variances and pending applications.
6) Declaration of covenants, conditions, restrictions, reservations and easements for the property.
7) Environmental reports (Phase I, Phase II, No Further Remediation (NFR) letters, mold abatement, underground storage tank testing, soil tests, boring, foundation, termite, radon, etc).
8) Correct and complete copy of each lease and guaranty.
9) Accounting of all rent, other income, maintenance, security deposits, tax contributions, delinquencies, years of occupancy, lease commencement dates, lease termination date, utility bills, expenses, etc. for the last three years.
10) Correct and complete copy of each written service contract.
11) List of all permits, certificates of occupancy, guarantees, warranties, government notices, special assessments, and code violations.
12) Copy of existing insurance policies and certificates and any pending insurance claims against the property.
13) Schedule of pending litigation affecting the property or seller’s ability to transfer the property.
14) Any and all other matters purchaser may deem reasonably necessary to satisfy itself, in its sole discretion, concerning the property and the status of the property’s title.