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Commercial Real Estate Due Diligence Checklist
Section 1: Tenant Information
1. 1. Does the rent roll show the tenant's name, suite number, and size of premises for each tenant?
Yes
No
N/A
2. 2. Is the rent provided, including scheduled rental increases and percentage rent?
Yes
No
N/A
3. 3. Are the term commencement and expiration dates provided, along with any extending options?
Yes
No
N/A
4. 4. Are options and rights of refusal to expand or contract the premises or to terminate the lease provided?
Yes
No
N/A
5. 5. Is the common area expense pro rata share provided, along with base year and base year expenses if applicable, and any caps?
Yes
No
N/A
6. 6. Is the security deposit information provided?
Yes
No
N/A
7. 7. Are guarantors, if any, identified?
Yes
No
N/A
8. 8. Are concessions made to tenants provided, including free or reduced rent, above-standard tenant improvements, cash payments, moving allowances, or takeover of previous lease obligations?
Yes
No
N/A
9. 9. Is the nature of the tenant’s business and use, including exclusive use rights if any, provided?
Yes
No
N/A
10. 10. Is a schedule of any tenant improvement work by the seller obligated to complete but has not yet been completed and capital improvement work either scheduled or in process on the date of this purchase agreement provided?
Yes
No
N/A
11. 11. Are current and historic vacancy rates provided?
Yes
No
N/A
12. 12. Are copies of all leases (including all exhibits and attachments) and amendments, including guarantees and subleases provided?
Yes
No
N/A
13. 13. Is a copy of or access to review the tenants’ files maintained by the seller provided?
Yes
No
N/A
14. 14. Are most recent financial statements and credit information and reports, if any, for all tenants and guarantors provided?
Yes
No
N/A
15. 15. Are current and historic payment reports for each tenant provided?
Yes
No
N/A
16. 16. Are any executed letters of intent with prospective tenants provided?
Yes
No
N/A
17. 17. Is the most recent leasing status report from the leasing broker provided?
Yes
No
N/A
18. 18. Is a standard form lease provided?
Yes
No
N/A
Section 2: Operating Information
1. 1. Are financial statements of the property provided for the past three years and year-to-date for the current calendar year?
Yes
No
N/A
2. 2. Are current operating and capital expense budgets of the property provided, including a comparison of actual to budgeted results and an explanation of significant variances?
Yes
No
N/A
3. 3. Is a listing of capital expenditures for the property for the prior years provided?
Yes
No
N/A
4. 4. Are copies of all service, maintenance, leasing, management, or other contracts, and all other agreements, warranties, and guarantees relating to the operation, use, management, or maintenance of the property provided?
Yes
No
N/A
5. 5. Are copies of real estate tax bills (including special assessments) for the prior three years provided, including evidence of payment of each?
Yes
No
N/A
6. 6. Are utility bills for the last two years provided?
Yes
No
N/A
7. 7. Is an aged receivables report through the date for the prior twenty-four months provided?
Yes
No
N/A
8. 8. Are copies of all owner’s insurance policies now in effect concerning the property provided, including owner disclosure affidavits, insurance inspector’s risk assessment reports, copies of any claims under such policies, and evidence in Seller’s possession that tenants are maintaining the insurance coverages required under their leases?
Yes
No
N/A
9. 9. Is a list of employees, if applicable, including name, position, wage, and benefits provided?
Yes
No
N/A
Section 3: Building Information (Plans And Reports)
1. 1. Are mechanical reports, including HVAC, provided?
Yes
No
N/A
2. 2. Are roof reports provided?
Yes
No
N/A
3. 3. Are environmental reports, including soil tests, radon, mold, lead paint, and asbestos reports, provided?
Yes
No
N/A
4. 4. Are geotechnical soil reports provided?
Yes
No
N/A
5. 5. Is a seismic risk assessment (probable maximum loss) report provided?
Yes
No
N/A
6. 6. Are plans and specifications showing the “as-built” condition of the property provided?
Yes
No
N/A
7. 7. Are reports showing compliance with Americans with Disabilities Act (ADA) requirements provided?
Yes
No
N/A
8. 8. Is an architect’s certificate or studies certifying the square footage of the building provided?
Yes
No
N/A
Section 4: Miscellaneous
1. 1. Are all licenses, permits, and approvals for the property provided, including certificates of occupancy for the building and each tenant?
Yes
No
N/A
2. 2. Is the most recent boundary and/or title survey provided?
Yes
No
N/A
3. 3. Is the Seller’s policy of title insurance for the property provided?
Yes
No
N/A
4. 4. Are copies of existing loan documents provided if the loan(s) are being assumed?
Yes
No
N/A
5. 5. Are copies of any notices of violations of or verifications of compliance with any federal, state, municipal, or other health, fire, building, zoning, safety, environmental protection, or other applicable codes, laws, rules, regulations, or ordinances relating or applying to the property provided?
Yes
No
N/A
6. 6. Is a list of all pending and historic litigation against the property, against Seller, or any general partner of the Seller that relates to the property provided?
Yes
No
N/A
7. 7. For larger properties, are trademarks, brochures, and websites provided if such intellectual property is transferred?
Yes
No
N/A
8. 8. Is a list of all furniture, fixtures, equipment, and supplies attached to, located in, or used in connection with the operation of the property which will be conveyed to the buyer provided?
Yes
No
N/A