Sample Real Estate Due Diligence and Closing Checklist

DUE DILIGENCE CHECKLIST

RESPONSIBLE
SUBJECT PARTY DATE STATUS

A. Acquisition Matters

• Execution of Contract of Sale

• Confirmation of Buyer’s delivery of

down payment to Escrow Agent
(Contract § _________)

• Escrow Agent’s deposit of down

payment into interest-bearing account
(Contract § _________)

• Seller’s provision of most recent title

insurance policy to Buyer (Contract
§ _________)

• Buyer’s obtaining of and review of an

updated Title Commitment for the
Property, including endorsements
(Contract § _________)

• Seller’s provision of most recent

survey to Buyer (Contract § _________)

• Buyer’s obtaining of an updated

Survey (Contract § _________)

• Seller’s provision to Buyer of true,

correct, and complete copies of all
Leases (Contract § _________)

• Seller’s provision to Buyer of access to

Seller’s books and records (Contract
§ _________)

• Buyer’s obtaining of a new

environmental report (Contract
§ _________)
 RESPONSIBLE
SUBJECT PARTY DATE STATUS

• Buyer’s provision of Termination

Notice to Seller by Due Diligence
Expiration Date (Contract § _________)

• Buyer’s provision of Title and Survey

Objection Notice to Seller by Title and
Survey Objection Date (Contract
§ _________)

• Seller’s response to Title and Survey

Objection Notice (Contract
§ _________)

• Buyer’s notice of termination of

Contract due to Seller’s failure to cure
title and survey matters (Contract
§ _________)

• Buyer’s notice of objection to any

matters disclosed in a title continuation
report (Contract § _________)

• Buyer’s delivery to Seller, prior to

Buyer’s undertaking of due diligence
review, of evidence that Buyer carries
adequate insurance (Contract
§ _________)

• Buyer’s return to Seller of all due

diligence documents, if Closing does not
occur for any reason (Contract § _____)

• Seller’s preparation of Tenant

Estoppels (Contract § _________)

• Seller’s delivery of Tenant Estoppels to

tenants listed on Rent Roll (Contract
§ _________)

• Seller’s delivery of Tenant Estoppels to

Buyer, after completion by tenants
(Contract § _________)
 RESPONSIBLE
SUBJECT PARTY DATE STATUS

• Seller to cause all utility meters to be

read (Contract § _________)

• Apportionment of Transfer Taxes and

Other Costs (Contract § _________)

• Buyer to designate in writing Service

Contracts to be terminated (Contract
§ _________)

• Seller to terminate those Service

Contracts designated in writing by
Buyer(Contract § _________)

• Buyer to confirm zoning compliance,

including receipt of zoning letter from
zoning authority, if available (Contract
§ _________)

• Buyer to receive copies of all

approvals, including subdivision
approvals, certificates of occupancy,
zoning variances, special exceptions,
and similar documents (Contract
§ _________)

• Buyer to investigate any code or other

violations (Contract § _________)

• Buyer to receive copies of all prior

reviews and approvals from architectural
committees, if applicable (Contract
§ _________)

• Seller’s delivery of all environmental

reports to Buyer (Contract § _________)

• Buyer to investigate whether there are

pending tax assessment proceedings
(Contract § _________)

• Buyer to investigate whether there are

special assessments or other similar
obligations to municipalities or
 RESPONSIBLE
SUBJECT PARTY DATE STATUS

government authorities (Contract

§ _________)

• Buyer to confirm that Seller maintains

adequate property and casualty
insurance through the Closing Date
(Contract § _________)

• Seller’s delivery of tax bills to Buyer

(Contract § _________)

• Seller’s delivery of non-Lease

estoppels to Buyer (Contract
§ _________)

• Buyer’s application for Purchase

Money Loan (Contract § _________)

• Buyer’s notice of termination to Seller

due to lack of receipt of commitment for
Purchase Money Loan (Contract
§ _________)

B. Loan Matters

• Borrower’s delivery of Commitment

Fee to Lender (Contract § _________)

• Borrower’s delivery of appraisal to

Lender (Contract § _________)

• Borrower’s delivery of mortgagee’s

policy of title insurance to Lender
(Contract § _________)

• Borrower’s delivery of survey to

Lender (Contract § _________)

• Borrower’s delivery of environmental

report to Lender (Contract § _________)

• Borrower’s delivery of all acquisition

 RESPONSIBLE
SUBJECT PARTY DATE STATUS

documents to Lender (Contract

§ _________)

• Borrower’s delivery of building plans

and specifications to Lender (Contract
§ _________)

• Borrower’s delivery of an engineering

report to Lender (Contract § _________)

• Borrower’s delivery of an architect’s or

engineer’s certificate to Lender
(Contract § _________)

• Borrower’s delivery of all insurance

certificates to Lender (Contract
§ _________)

• Borrower’s delivery of a certified rent

roll to Lender (Contract § _________)

• Borrower’s delivery of all leases to

Lender (Contract § _________)

• Borrower’s delivery of an update to the

certified rent roll to Lender (Contract
§ _________)

• Borrower’s delivery of all estoppel

certificates to Lender (Contract
§ _________)

• Borrower’s delivery of the

management agreement and all service
contracts to the Lender (Contract
§ _________)

• Borrower’s delivery to Lender of

evidence of all utility connections
(Contract § _________)

• Borrower’s delivery of UCC searches

to Lender (Contract § _________)
 RESPONSIBLE
SUBJECT PARTY DATE STATUS

• Borrower’s delivery of other searches

of public records to Lender (Contract
§ _________)

• Borrower’s delivery of evidence of its

power to borrow to Lender (Contract
§ _________)

• Borrower’s delivery of certified copies

of its formation documents and related
materials to Lender (Contract
§ _________)

• Borrower’s delivery of all required

financial statements to Lender (Contract
§ _________)

• Borrower’s delivery to Lender of all

other documents required by Lender
(Contract § _________)

CLOSING CHECKLIST

RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

A. Purchase and Sale Documents

1. Closing Documents

a. Contract of Sale

b. Assignment of Contract
of Sale, if any

c. Deed (Contract § _________)

 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

d. Bill of Sale (Contract

§ _________)

e. Assignment of Leases by Seller

and Assumption by Buyer
(Contract § _________)

f. FIRPTA Affidavit (Contract

§ _________)

g. Seller’s Representations
Update Certificate (Contract
§ _________)

h. Buyer’s Representations
Update Certificate, if required

2. Other Closing Deliveries

a. Delivery of balance of purchase

price (Contract § _________)

b. Delivery of purchase money

note and mortgage, if any
(Contract § _________)

c. Payoff from current lender,

if any

d. Tenant Estoppel Certificates

(Contract § _________)

(1) Required Tenants

i.

ii.

(2) Remaining Tenants

 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

e. Delivery of Service Contract

Assignments (Contract
§ _________)

f. Seller’s delivery of new

Certificates of Occupancy
(Contract § _________)

g. Seller’s delivery of documents

and money adequate to satisfy
liens (Contract § __)

h. Security deposits under the

Leases (Contract § ___)

i. Original Letters of Credit held

by Seller as security deposits, if
any (Contract § ___)

B. Title/Escrow Documents

3. Buyer’s Title Commitment (Contract

§ _____)

4. Buyer’s Pro Forma Title Policy,

including endorsements (Contract §
_____)

5. Seller’s Affidavit (Contract

§ ________)

6. Escrow Instructions (Contract § ___):

a. Buyer

b. Seller

7. Survey (Contract § ___)

8. Other documents/forms required by

title company, if any (Contract §____)
 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

9. Closing Statement (Contract

§______)

10. Prorations/Adjustments/Taxes
(Contract § ________)

a. Rents

b. Payments and deposits made by

Tenants for real estate taxes

c. Real property taxes

d. Utilities

e. Fuel

f. Charges, revenues, and

deposits, if any, under Service
Contracts not terminated prior
to Closing

g. All customary items of revenue

or expense, including all
advance payments to occupy
space or use facilities within
the Buildings

h. Credits representing Leasing

Costs

11. Closing Costs/Expenses (Contract §

___)

a. Escrow fees

b. Legal fees

c. Cost of updates to Survey

 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

d. Cost of Title Commitment and

any endorsements to Buyer’s
title insurance policy

e. Due diligence expenses and

charges for any engineering
reports or appraisals
commissioned by Buyer

f. Special tax, impact fee, or

assessment, if any

g. City and state charges to record

documents in the Official
Records

h. Termination fees, if any,

arising out of the termination
of a Service Contract

i. State and local transfer taxes,

including grantor’s tax and
grantee’s tax

j. Leasing and brokerage costs

C. Organizational Documents/Authority

12. Seller’s Organizational Documents

(Contract § ________):

a. Certified Articles of
Organization

b. Bylaws

c. Incumbency/Restrictions

d. Good Standing Certificate

13. Buyer’s Organizational Documents

 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

(Contract § ______):

a. Certified Articles of
Organization

b. Bylaws

c. Incumbency/Restrictions

d. Good Standing Certificate

D. Other Deliveries

14. True and complete originals of all

Leases (Contract § ______)

15. Updated tenant list (Contract

§ _______)

16. Letters to existing Tenants notifying

them of sale (Contract § _______)

17. Letters to Service Contractors

notifying them of sale (Contract
§ ________)

18. Keys (Contract § _______)

19. Operating manuals; warranties and

guarantees; building plans; permits; real
estate tax bills; current water, sewer, and
utility bills; Service Contracts (to the
extent assumed); and copies of operating
statements (Contract § ______)

E. Loan Requirements

20. Appraisal (Commitment § ____)

21. Environmental Report (Commitment

§ ___)
 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

22. All acquisition documents to Lender

(Commitment § ____)

23. Plans and specifications

(Commitment § _____)

24. Report addressing physical condition

of property (Commitment § _____)

25. All required insurance certificates

(Commitment § ____)

26. Copies of Leases, including all

amendments and exhibits (Commitment
§ _____)

27. Certified Rent Roll (Commitment

§ _____)

28. Tenant Estoppels (Commitment

§ _____)

29. Management agreement and all

service contracts (Commitment § ____)

30. Evidence of all utility connections

(Commitment § ____)

31. UCC Searches (Commitment § ____)

32. Other searches of public records;

background and credit reports
(Commitment § ____)

33. Evidence of Borrower’s power to

borrow (Commitment § ____)

34. Certified copies of Borrower’s

formation documents and related
materials (Commitment § ____)
 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

35. All required financial statements of

Borrower and Guarantors (Commitment
§ ____))

36. Borrower’s Certificate (Commitment

§ ____)

37. Legal Opinion (Commitment § ____)

38. Inventory of Personal Property

(Commitment § ____)

39. Evidence demonstrating that

Borrower is in compliance with money
laundering, anti-terrorism, and other
similar laws (Commitment § ____)

40. Written notice of proposed Closing

Date (Commitment § ____)

41. All other documents required by

Lender (Commitment § ____)

42. Borrower’s delivery to Lender of its

initial escrow deposit of taxes and
insurance (Commitment § ____)

43. Borrower’s payment to Lender of all

of Lender’s closing costs and expenses
(Commitment § ___)

44. Zoning report/zoning opinion, if

required

45. Subordination, nondisturbance, and

attornment agreements, if required

46. Agreement assigning and

subordinating management fees, if
required
 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

47. Current tax bills, if required

48. Taxpayer Identification Number

Certificate

49. Closing Statement

50. Closing Agenda

F. Loan Documents

51. Loan Agreement

52. Promissory Note (Commitment

§ ____)

53. Mortgage/Deed of Trust

(Commitment §_____)

54. Security Agreement and Fixture

Filing (Commitment § _____)

55. UCC Financing Statements

(Commitment § _____)

56. Assignment of Leases and Rents

(Commitment § _____)

57. Guarantee (Commitment § ______)

58. Environmental Indemnity Agreement

(Commitment § ____)

59. Other security documents required by

Lender (Commitment § ____)

G. Lender’s Title Requirements

60. Title Commitment, with underlying

documents (Commitment § ____)
 RESPONSIBLE EXECUTING
DOCUMENT/ITEM PARTY PARTIES STATUS

61. Policy of Title Insurance

(Commitment § _____)

62. Survey (Commitment § ____)

63. Required Endorsements

H. Borrower’s Requirements

64. Lender’s Delivery of Principal

Amount to Borrower (Commitment
§ ____)