Due Diligence Checklist for Smooth Closing

Finding good commercial investment real estate is very competitive. Buyer must be prepared to close efficiently in order to be selected in a competitive offering. A through due diligence process can avoid future problems, secure financing and ensure a smooth closing. The sample diligence checklist includes some of the key information needed.

Due Diligence Checklist 

Financial statements and operating statements for past 3 years, YTD actual and budget for current year 
Copies of all tenant leases and ground leases Environmental site assessments 
Property condition reports, Appraisal, Zoning report 
Current and the last 2 years tax bills 
Rent rolls,Tenant delinquency report in the last 3 years 
Historical occupancy reports for the last 3 years
List of any tenant improvements owed or due to be owed 
Evidence of Insurance Capital expenditures in the last 3 years and the current year/budget 
Verification of operating expenses 
Partnership agreements, Articles of incorporation, Copy of existing Management and Operations agreements 
Copies of all service contracts 
Title and survey documents, tax and judgment liens, litigation and bankruptcy searches

Source: Harbor Stone Advisors Commercial Group