# Commercial acquisition diligence

Canonical: https://chicagocommercialfunding.com/tools/acquisition-diligence/

A practical investigation sequence before your closing obligations become firm.

An original educational working agenda, not a legal form or substitute for transaction-specific advice.

- [ ] **Build the document request.** Request leases, amendments, rent rolls, financials, service contracts, insurance history, permits, surveys and tax records. Track what is missing.

- [ ] **Reconcile collections.** Compare rent-roll charges with lease obligations, bank deposits, receivables and concessions. Occupancy alone does not establish collectible income.

- [ ] **Abstract every lease.** Record rent, dates, options, recoveries, maintenance, assignment, termination and notice requirements. Read all amendments together.

- [ ] **Validate legal use.** Confirm zoning, legal occupancy and the intended tenant use with the appropriate jurisdiction. Physical use does not establish lawful use.

- [ ] **Review title and survey.** Ask counsel and the surveyor to explain exceptions, easements, access, parking and encroachments.

- [ ] **Investigate environmental conditions.** Engage an appropriate environmental professional early enough to complete follow-up investigations before deadlines.

- [ ] **Inspect the property.** Evaluate roofs, structure, HVAC, electrical service, plumbing, life safety, accessibility and immediate repairs with qualified specialists.

- [ ] **Quote insurance.** Obtain current quotes matched to the property, uses, replacement exposure and lender requirements.

- [ ] **Stress taxes and expenses.** Model owner-borne increases and recovery limitations; verify assumptions against current records.

- [ ] **Build an all-in capital budget.** Include acquisition, closing, initial repairs, leasing capital, financing costs and working reserves.

- [ ] **Verify financing conditions.** Separate lender quotes from commitments. Track third-party reports, equity documentation, reserves and closing conditions.

- [ ] **Prepare the closing statement.** Reconcile deposits, prepaid rent, taxes, operating expenses, prorations and transferred contracts.

- [ ] **Set the ownership handover.** Arrange management authority, vendor contacts, utilities, insurance, account access and tenant notices.

- [ ] **Record unresolved risks.** Assign an owner and resolution deadline to each issue. Decide explicitly whether to close, renegotiate, extend or walk away.

- [ ] **Calendar the purchase agreement.** Have counsel identify diligence, financing, title, survey, deposit and termination deadlines. Record the exact notice method and delivery responsibility before relying on an exit right.

- [ ] **Confirm tenant and lender closing evidence.** Reconcile required estoppels, SNDAs, consents and unresolved tenant claims with the purchase agreement and financing conditions; an estoppel does not replace the underlying lease review.

## Research sources

- [OCC — CRE underwriting and risk framework](https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/commercial-real-estate-lending/pub-ch-commercial-real-estate.pdf)
- [EPA — environmental inquiry framework](https://www.epa.gov/brownfields/brownfields-all-appropriate-inquiries)
- [Chicago — construction-code starting point](https://chicago.gov/city/en/depts/bldgs/provdrs/bldg_code/svcs/chicago_buildingcodeonline.html)