Due Diligence Check List for Commercial Real Estate Transactions

Due Diligence Check List for Commercial Real Estate Transactions

Due diligence is not the same for commercial real estate as it is for residential – the main difference is ownership.  It is critical to ensure a buyer makes a sound investment.

Where residential is own by individuals – commercial is own by entities.  Why? to limit liability – hence why due diligence becomes the most important component in a commercial real estate transaction.

Here is the check list:

Title: to determine the potential title issues and ensure the property is registered to the Seller

Survey: a real property report illustrates the location of significant visible improvements relative to property boundaries.

Environmental:  to ensure of a property’s environmental compliance

Zoning: to ensure that zoning is what the buyer requires

Financial records:  the buyer will want access to financials  when a business is being purchase.

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