Commercial real estate closure list

One of the main reasons for the possible failure of commercial real estate transactions at the end is because one of them forgot an important aspect of the transaction that needs to be considered before signing the relevant documents.

With this in mind, we've created a small list of things to keep in mind when closing commercial real estate to ensure that all foundations are covered.

Acquisition document

You need to make sure that all purchase-related documents are in place. This includes all of the following:

• Signed letter of intent
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  • Purchase any and all drafts of the contract
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  • Any information related to your legal counsel
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  • Access Agreement
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  • Any customer or portfolio manager authorization required
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  • Complete purchase contract will be delivered to the host
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  • Purchase of initial cash deposit documents
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  • Arrange any bank account that needs to be set up

Title item

Title and partition issues are also a high priority, so make sure you have the following:

• You have selected a title company and you can send the seller's title commitment to
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  • Conduct an ALTA survey and make sure you have the right documentation
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  • Confirm that all relevant leases and assets are seller names

Tenant problem

If you are buying an apartment building or any form of commercial real estate, other businesses may become tenants and rent space, you need all of the following:

• Currently certified rental volume
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  • Review all current leases and related documentation for each lease.
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  • Your legal counsel should review these leases and compare them to current reviews
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  • You need to view all current tenant files
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  • Resolve any outstanding issues related to the lease
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  • Receive all reports related to the proposal, including sales and accounts receivable reports
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  • Transfer all tenant deposits
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  • View tenant credit and payment history
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  • Prepare and sign a tenant's estoppel certificate
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  • Final inspection of all documents

Finance

The transfer of all relevant financial information is also very important. This includes:

• A copy of any historical or formal financial information
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  • utility bill
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  • Recent tax reports
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  • List of fees for all fees currently operating under the property

Litigation

You need to consider the possibility of taking any current action on the property or existing owners and take this into account.

Insurance

Getting insurance for a building is critical, so it's important to get a quote in the report as early as possible. Some of these may be property management agreements.

Physical property test

Before completing any transaction, the physical property inspection must be carried out by the buyer to ensure that they get everything they expect from the property.

Final settlement document

To complete the transaction, all relevant financial and legal documents must be completed and delivered on time and fully accurate.

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