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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