When you need it
A one-page fact sheet the Seller — or a broker acting for the Seller — prepares for a prospective buyer or investor who is looking at a tenanted commercial property in Punjab or in Chandigarh: a shop, an SCO, a showroom, an office floor, a warehouse or an industrial unit that already has a tenant in occupation and is being shown to the market with that tenant staying on. Before an investor spends time and money on a full due diligence exercise, they usually want the shape of the tenancy at a glance — who the tenant is, what it pays, how long is left on the lease, what it would cost to buy, and roughly what that buys in yield. This sheet is built to answer exactly that, in one page: tenant and trade, area, lease dates and the term remaining, current rent and its annual escalation, the security deposit held, the lock-in position, the CAM and other charges the tenant carries, any renewal option, and — where a purchase price is already on the table — an indicative gross rental yield.
It is a summary and nothing more. It is not the Lease Deed or lease agreement it describes, and reading it is not a substitute for reading that document. It is not a Tenant Estoppel Certificate — the document the Tenant itself signs to confirm these same facts independently — and it does not do that document's job; where the parties are far enough along to want the Tenant's own confirmation, use that instead of, or as well as, this sheet. And it is not a binding representation, warranty or contract: nobody signs an acceptance of it, and putting a figure in one of its boxes does not create a legal promise beyond what the general law already makes a person answerable for when they hand over a written statement of fact. A buyer who treats this sheet as if it carried the weight of the Lease itself, or of a certificate the Tenant has actually signed, is taking on a real and avoidable risk.
It sits early in the deal, ahead of an Agreement to Sell – Tenanted Commercial Property and ahead of instructing an advocate on a fuller title and tenancy due diligence exercise — the fast, cheap, first look at a tenanted property, not the last one a buyer should take before paying anything.
Not for a residential tenancy, and not for a property that is vacant or being sold with vacant possession — this is a commercial, tenanted-property document only. Not a substitute for the Lease itself or for a Tenant Estoppel Certificate, however carefully it is filled in. And not the place for the Seller to make binding representations about the tenancy — a Seller willing to stand behind these facts contractually should do so in the representations clause of the Agreement to Sell itself, not by filling in a box on this sheet.