23 Jan Annapolis Commercial Real Estate: Checklist for Lease Closing
When all of the negotiations for a commercial real estate deal have been completed, the broker and the commercial tenant have agreed to the terms of the lease. At this point, all that is left is the lease closing. Often, there are so many back-up papers than must be produced, examined and approved, that the closing can be held up because of a forgotten document.
While the commercial real estate broker that you work with will typically coordinate the closing and ensure that all necessary documents are prepared, it is a good idea for both landlords and tenants to also review these requirements and discuss them in advance of the closing with their brokers.
Following is a checklist that provides basic information on typical documents that may be required at a closing. It is a starter list, and may be expanded so that it is complete for your particular property:
- Lease: Be certain that there are enough copies of the lease, fully prepared and ready to be signed.
- Signatures: Be sure that you have all necessary signatories present.
- Bill of Sale: If personal property is being sold when the property is leased, your lessee will want a bill of sale for items conveyed.
- Property Data: Bring appropriate maps, surveys, and diagrams to the closing, as they may contain information that will be useful to the tenant.
- Additional Data: Be prepared in case any questions might arise at the closing, so bring copies of: title abstracts, certificates and guarantees, certificates of occupancy and inspection, and mortgage data.
- A Notary: If required.
- Costs: You should have any tax receipts or assessments as well as bills for water, fuel, utilities and any other expenses that may be apportioned when the premises are leased.
- Maintenance Contracts
- Insurance Policies
- Forms for Consenting to Alterations and Repairs
- Leasing Material: You should bring subordinate leases as well as necessary information about security deposits.
- Receipts: Be sure to have receipts for documents and money delivered to you or to the lessee.
- Miscellaneous: Before the closing meeting, you may wish to write a letter to the prospective lessee reminding him to bring necessary documents such as power of attorney or other authorizations he will need. You may want to remind him to bring cash or a check for rent, security or adjustments.