© Practising Law Institute REAL ESTATE LAW AND PRACTICE Course Handbook Series Number N-644

18th Annual

Commercial Real Estate Institute Volume One

Co-Chairs

Elliot L. Hurwitz Josh M. Leavitt Richard C. Mallory To order this book, call (800) 260-4PLI or fax us at (800) 321-0093. Ask our Customer Service Department for PLI Order Number 149156, Dept. BAV5.

Practising Law Institute 1177 Avenue of the Americas New York, New York 10036

© Practising Law Institute

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Form Closing Checklist

Jodi B. Fedor SSL Law Firm LLP

Danna M. Kozerski Coblentz Patch Duffy & Bass LLP

If you find this article helpful, you can learn more about the subject by going to www.pli.edu to view the on demand program or segment for which it was written.

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© Practising Law Institute CLOSING CHECKLIST RESPONSIBILITY AND STATUS SCHEDULE ACQUISITION OF ____________________________ [CITY, STATE] PARTIES/COUNSEL: PURCHASER - “Purchaser”

Company/Entity Name Address City, State, Zip Attention: __________ Facsimile: __________ Telephone: _________ E-mail: _____________

Purchaser’s Legal Counsel – “[insert firm name]”

Firm Name Address City, State, Zip Attention: __________ Facsimile: __________ Telephone: __________ E-mail: _____________

SELLER - “Seller”

Company/Entity Name Company Address City, State, Zip Attn: _____________ Facsimile: ___________ Telephone: __________ E-mail: ____________

SELLER’S COUNSEL – “[insert firm name]”:

Firm Name Address City, State, Zip Attention: __________ Facsimile: __________ Telephone: __________ E-mail: ____________

LENDER – “Lender”:

Lender Name Address City, State, Zip Attention: __________ Facsimile: __________ Telephone: __________

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© Practising Law Institute LENDER’S COUNSEL – “[insert firm name]”:

Firm Name Address City, State, Zip Attention: : __________ Facsimile: __________ Telephone: __________ Email: _____________

Title Company – “Title”:

Insert Title Company Name Address City, State, Zip Attention: : __________ Facsimile: __________ Telephone: __________ Title No.: ___________

Escrow Holder – “Escrow”:

Insert Escrow Company Name Address City, State, Zip Attention: : __________ Facsimile: __________ Telephone: _________ Escrow No.: _____________

Status Codes: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

To be determined Documents/draft to be ordered/prepared/furnished Item ordered; not yet received Item received; to be reviewed Draft prepared and circulated; waiting for comments Revisions prepared and circulated; waiting for comments Comments made/received; revisions to be made Forms approved/final documents to be prepared In final form Executed/Received/Done/Approved

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© Practising Law Institute Purchasing Entity: ______________, a _______________ Closing Date: ______________, 20__ DOCUMENTS/ITEMS

RESP. PARTY

WHO SIGNS

STATUS

1. Purchase Documents 1.1. Purchase and Sale Agreement 1.2. [Assignment of Purchase and Sale Agreement from Parent to Acquiring Entity] 2. Closing Documents [Revise per PSA] 2.1. Grant Deed 2.1.1. Exhibit A: Legal Description 2.2. Bill of Sale 2.2.1. Schedule 1 Personal Property Inventory 2.3. Assignment and Assumption of Leases 2.3.1. Exhibit A: Legal Description 2.3.2. Schedule 1: Rent Roll 2.4. Assignment and Assumption of Service Contracts and Intangible Property 2.4.1. Exhibit A: Legal Description 2.4.2. Exhibit B: List of Contracts 2.5. Notice to Tenants 2.6. FIRPTA Affidavit 2.7. Cal. FIRPTA/ Cal. FTB 593-C

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© Practising Law Institute DOCUMENTS/ITEMS

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2.8. Seller Date-Down Certificate 2.9. Natural Hazard Disclosure Acknowledgement (If California property) (Revise for applicable state/local requirements) 3.

Purchaser’s 1031 Exchange Documents (if applicable) 3.1. Identification of Replacement Property 3.2. Assignment and Notification (Buyer’s Position) 3.3. [Amendment to] Agreement for Exchange of Real Property and Qualified Escrow Agreement 3.4. Accommodator’s Escrow Instructions

4.

Organizational, Authorization and Operational Documents 4.1. Purchasing Entity (if an LLC) 4.1.1. Articles of Organization (LLC-1, Certified)) 4.1.2. Operating Agreement (and amendments, if any) 4.1.3. Consent Resolution/Authorizatio n 4.1.4. Good Standing Certificate (State(s)) 6

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WHO SIGNS

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4.1.5. Certificate of Registration/ Qualification to do business in ______ (if applicable) 4.2. Purchasing Entity (if a Limited Partnership) 4.2.1. Certificate of Limited Partnership (LP-1, Certified) 4.2.2. Partnership Agreement (and amendments, if any) 4.2.3. Consent Resolution/ Authorization 4.2.4. Good Standing Certificate (State(s)) 4.2.5. Certificate of Registration/ Qualification to do business in ______ (if applicable) 4.3. Purchasing Entity (if a corporation) 4.3.1. Articles of Incorporation (certified) 4.3.2. Bylaws (and amendments, if any) 4.3.3. Consent Resolution 4.3.4. Good Standing Certificate (State(s)) 4.4. “Up the Chain Entities” (as applicable) 4.5. New Property Management Agreement

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© Practising Law Institute DOCUMENTS/ITEMS 5.

RESP. PARTY

Escrow Items 5.1. Deposit(s) ($________) by [insert date] 5.2. Due Diligence Approval Notice by [insert date] 5.3. Lien Waivers if ongoing work (if applicable) 5.4. Purchaser’s Escrow Instructions 5.5. Certified LLC-1/LP1/Articles delivered to escrow agent 5.6. Rent Roll dated as of closing to escrow 5.7. Closing Statement(s) 5.8. Holdback Agreement (if applicable)

6.

Title/Survey Review 6.1. Preliminary Title Report (copy to lender) 6.2. Underlying Title Documents (copy to lender) 6.3. ALTA Survey (copy to lender) 6.4. Pending Subdivision Maps (if applicable) 6.5. Title Objection Letter by [insert date] 6.6. Seller’s Repose to Title Objection Letter by [insert date] 6.7. Owner’s Title Policy/Proforma

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WHO SIGNS

STATUS

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WHO SIGNS

STATUS

6.8. Lender’s Title Policy/Proforma 6.9. UCC Search 7.

Other Due Diligence 7.1. Lease Documents 7.1.1. Rent Roll 7.1.2. Copies of all leases (or if multi-family, copy of lease form and rent roll) 7.1.3. Copies or on-site review of lease correspondence and tenant financial information 7.1.4. Lease Summaries (if requested) 7.1.5. Certified list of security deposits/copies of letter of credit held as security 7.1.6. Tenant Contact List 7.1.7. Tenant Estoppels (LIST BELOW) 7.1.8. Tenant Insurance Certificates (LIST BELOW) 7.1.9. Commission Agreements (if applicable) 7.1.10. Tenant improvement obligations/ agreements (if applicable)

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7.1.11. Tenant SNDAs, if required (LIST BELOW) 7.2. Zoning/ Entitlements 7.2.1. PZR Report 7.2.2. Zoning letter with copy of zoning code provisions 7.2.3. Certificates of Occupancy 7.2.4. Permits 7.2.5. Development Agreements, CC&Rs &/or Association documents (if applicable) 7.2.6. Parking space county/ compliance verification 7.2.7. Traffic restrictions, including TDM (if applicable) 7.3. Physical Due Diligence 7.3.1. Plans & Specs, including architectural, electrical, mechanical, floor plans, TIs (if available) 7.3.2. Documentation of building measurement 7.3.3. Fire/life safety report & test records 7.3.4. Physical inspection report (landscaping, plumbing, HVAC/ mechanical) 10

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7.3.5. Soils report (if applicable) 7.3.6. Environmental report (Phase I, other if applicable) 7.3.7. Air quality report (mold) (if applicable) 7.3.8. ADA compliance check 7.3.9. Warranties 7.3.10. Maintenance records for building systems and emergency generators 7.4. Property Operating/ Financial Due Diligence 7.4.1. Real estate tax bills (past 3 years) 7.4.2. Operating statement (current and prior year(s)) 7.4.3. General ledger (current and prior year(s)) 7.4.4. CAM documentation and reconciliation (current and prior year(s)) 7.4.5. Capital expenditure records (past 5 years and current year budget) 7.4.6. Vendor list 7.4.7. Copies of service contracts 7.4.8. Copies of equipment leases 11

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7.4.9. Utility bills (past 3 years) 7.4.10. Insurance certificates and claims history 7.4.11. Current Management Agreement 7.4.12. Current lease form 7.4.13. Personal property inventory 7.4.14. Rooftop/ telecom licenses and agreements 7.4.15. Signage inspection 7.4.16. California Required Energy Disclosure (revise for applicable state/local requirements) 7.4.17. Litigation searches 8.

Loan Documents [Revise per loan] 8.1. Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing 8.2. Assignment of Leases and Rents 8.3. Promissory Note 8.4. UCC-1 Financing Statement – County

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WHO SIGNS

STATUS

8.5. UCC-1 Financing Statement – State 8.6. Environmental Indemnity Agreement 8.7. Assignment and Subordination of Management Agreement 8.8. Legal Opinion 8.9. Guaranty (Non-Recourse Carve-Outs) 8.10. Loan Agreement

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© Practising Law Institute NOTES

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