The Key Records of Due Diligence Check

A final decision to Purchase a commercial property is usually determined by the results of a due diligence evaluation. When physicians speculate they rely on their staff and employ a systematic process of investigation into the details of a potential investment, including an examination of operations and management, a review of financial records plus other components substance to the sale, and the verification of presenting data.

Applying a consistent Standard of review and analysis regarding Market, Financial, Tenant, and Physical Property, you can ascertain if the real conditions do or do not reflect the details as represented credit check hong kong. In the examination certain important documents are required to decrease the possibility of investor’s capital.

Here’s a list of Documents you may review:

Financial

  • Year-to-Date detailed Gain & Loss (P&L) announcement
  • Historical financial statements for the past 3 years
  • Current capital and operating budgets
  • Statements of Capital expenditures for previous 3 years
  • Copies of support, maintenance, equipment leases and other contracts
  • Copies of tax assessments and property tax statements for past 3 years

Tenant

  • Rent rolls that record each tenant, tenant is name, suite number, size of occupied premises, base lease, rent increases, pro rata share of common area operating expenses, caps, security deposits, balance owed, duration, commencement and expiry dates and alternatives
  • Present property management accounts, such as unit status reports, occupancy reports, expired leases, pre-leases, move-outs, eviction notices
  • All leases, including all exhibits, addenda, warranties, amendments, supplements, attachments, modifications and subleases
  • A standard lease form
  • Concessions made to tenants, such as reduced or free rent, tenant improvements, cash payments and move-in allowances

Physical Property

  • All historical appraisals and photographs
  • All architectural, construction, and other drawing such as, but not Limited to: site plans, elevations, schematics and renderings
  • Any and all environmental impact reports due diligence check, such as Hazardous Waste and/or Hazardous Waste studies

Sellers may also Perform a due diligence analysis on the purchaser. Items that might be considered are the buyer’s ability to buy; in addition to other items that would impact the purchased entity or the vendor after the purchase was completed. The purchaser or investor has a fiduciary obligation to analyze these vital Records before signing a legal contract or committing to investing in real estate.