Purchase Check List

  1. 1. provide a completed application form signed by all principals.  Should include a provision to allow for personal and corporate credit checks.  Should also include an exclusive agency clause and specify the amount of the service commission.

  2. 2. provide detailed net worth statements of each principal and 3 years of financials for the business being used to acquire the property.  Review engagement statements or better.

  3. 3. provide an executed copy of the Agreement of Purchase and Sale with all amendments and attachments.

  4. 4. obtain copy of the MLS listing, if any, with photos.

  5. 5. either take interior and exterior property photos yourself or have it done.  Ensure they are in JPEG digital format and at least 8 megapixel resolution.  More is better.

  6. 6. show source of downpayment and confirmation of it’s existence as unencumbered funds.

  7. 7. provide 3 years of historical and one year of proforma operating statements for the property.

  8. 8. provide a current rent roll showing the tenants names, address, space leased, lease term(s), lease rate, total amount of monthly rent and expense recoveries.

  9. 9. provide copies of all leases, amendments and attachments.

  10. 10. IF the property is to be owner-occupied, you will need to show detailed statements of the purchaser to show how the debt will be serviced.

  11. 11. provide personal income statements from the principals.

  12. 12. provide the last 3 years of tax assessment for each principal of the purchaser.

  13. 13. provide a copy of the last property assessment by the local taxing authority.

  14. 14. provide the details about the purchasing company such as; date of incorporation, shareholders list and percentage owned, verify the company is in good standing with the provincial or federal registry.

  15. 15. clarify how title to the property will be held, if not held by the company.  For example, a bare trustee or a Limited Partnership. In other words, who is the “borrower” to be.

  16. 16. ensure a recent (within the last year) environmental Phase 1 report has been completed.

  17. 17.ensure a recent (within the last 6 months) appraisal is available using one of the major appraisal firms such as Colliers, CBRE, Cushman Wakefield, etc.

  18. 18. obtain the borrower’s lawyer/solicitor name, phone, fax numbers and email address.


Check List - Purchase Financing
before you seek financing, please...