ਆਪਣੀ ਜਾਣਕਾਰੀ ਭਰੋ

INVESTOR DUE-DILIGENCE CHECKLIST FOR A PRE-LEASED PROPERTY

__________, __________

Investor: __________
Seller: __________
Tenant: __________
Lease: __________
Date: __________

This is a working checklist. It is not signed by the seller or the tenant and creates no rights. Tick a box only when the document has been seen, not when someone has said it exists. Where an item cannot be ticked, write why in the remarks.

A. Title and tenure

B. The lease

[ ] Signed copy of __________ read in full, with every addendum, renewal and side letter.
[ ] Lease properly stamped and, where its term or rent requires it, registered; an unregistered lease that needed registration is a weak footing for the rent and the term.
[ ] Start date, expiry date, lock-in period and what is left of each worked out from the lease, not from the seller's summary.
[ ] Current rent, escalation, CAM and other charges, and the due date agreed against what the tenant actually pays.
[ ] Security deposit: amount in the lease, amount actually held, and how it passes to the buyer.
[ ] Renewal option, early exit, assignment and sub-letting clauses read, and who can use them.
Remarks: ______________________________

C. The tenant

[ ] Who __________ is, in law: the entity, its registration papers and the person who signed the lease for it.
[ ] Bank statements or rent receipts for at least the last twelve months showing rent actually paid on time.
[ ] Tenant's own confirmation of rent, deposit, term and absence of disputes, in a Tenant Estoppel Certificate signed by the tenant.
[ ] Premises visited: the tenant is actually in occupation, trading and using the premises for the permitted use.
[ ] Tenant's financial standing looked at, and any bank guarantee or parent company guarantee behind the rent seen in original.
Remarks: ______________________________

D. Approvals

[ ] Sanctioned building plan and completion or occupancy certificate for the building, matching what is built and let.
[ ] Permitted use of the site matches the tenant's use; any change of use approved; fire and other safety clearances held where the tenant's trade needs them.
[ ] Permission or no-objection of the allotting authority to transfer the property to the investor, and the fee for it, as the site tenure in group A requires.
Remarks: ______________________________

E. Dues and taxes

[ ] Property tax, electricity, water and common area charges paid up to date, with receipts seen; nothing outstanding that passes to the buyer.
[ ] Tax on the rent: whether the tenant deducts tax at source and to whom the certificates are issued, and whether GST is charged on the rent and who accounts for it. Take the chartered accountant's advice on the position after the sale.
[ ] Stamp duty and registration charges for the sale deed confirmed with the Sub-Registrar and added to the cost of the purchase.
Remarks: ______________________________

F. Litigation and charges

[ ] Any loan on the property: the lender's no-objection and release of the mortgage obtained before or on completion.
[ ] Court and tribunal search for cases against the seller, the property or the tenant, including any dispute between seller and tenant about rent, eviction or the deposit.
[ ] No attachment, notice of acquisition, or claim by a family member, co-owner or society on the property.
Remarks: ______________________________

G. The sale itself

[ ] Yield recomputed from the lease rent and the price, and compared with the yield the seller quotes; it is a gross figure and ignores charges, tax and vacancy.
[ ] Agreement to Sell settles how rent for the month of sale is split, how the deposit and any bank guarantee move to the investor, and what the seller repays if the lease ends early.
[ ] Tenant told of the sale in writing and asked to pay the investor from completion, by an attornment letter signed by the tenant.
[ ] If several investors are buying together, their shares, rent split and exit rights written down in a Co-ownership Agreement before the sale deed is signed.
Remarks: ______________________________

Conclusion

[ ] Proceed [ ] Proceed on the conditions below [ ] Do not proceed
Conditions: ______________________________

PREPARED BY
Name: __________
Signature: ______________________________
Date: __________