From The MSM Archive:No Detail Overlooked The Legal Side Of Due Diligence And The Pre-Closing Process By David A Weissman


    The number one key to a successful closing on an existing self-storage facility is anticipating problems and finding solutions well in advance of closings. Advance notice and analysis of potential issues to the parties allows time for smooth resolutions of problems, thus minimizing surprises and the accompanying anxiety. As such, a thorough checklist is an invaluable tool. The checklist should not be viewed as complete,but as a work in process that should have room for notes by the reviewer; and it should be flexible enough to allow for expansion or contraction of the list of required pre-closing items.

    The basic list of items required on nearly every closing includes:loan term sheet; title commitment; copies of exceptions; survey and survey inspection report; copies of leases and rent roll; environmental report; evidence of zoning compliance and certificate of occupancy; physical inspection report; commercial liability and casualty insurance binders; borrower and guarantor organizational documents; opinion of counsel (local and out-of-state, as applicable and depending on lender requirements); and appraisal (usually handled directly by lender).

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