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.