The following is a useful checklist in planning your purchase. It can be used as a starting list and customized.
Typical Contracting Steps
- Review brochure, location map, traffic, nearby services, demographics, to ensure location is a good fit for business.
- Visit site - arrange through site brokers CGR (See Contact Us).
- Understand the available units and the details of the building.
- Request a proposal from CGR.
- Clarify any concerns in the proposal as contract will be prepared using the details in the proposal, then sign and send the proposal to CGR for approval by owners.
- CGR will have a contract prepared based on proposal for review and signature.
- Review the contract to ensure it matches proposal and deliver a signed contract for execution by owners.
- Upon receipt of fully executed contract, deliver the required deposit to escrow agent.
Typical Due Diligence Steps
- Be mindful of the time allowed for due diligence after which the contract and deposit are firmed up.
- Determine improvements necessary to suit the planned business activity and estimated cost.
- Check with county to ensure any requirements in order to obtain a license and occupancy.
- Review useful documents on this website or as delivered by brokers to understand the available building documents, condo association documents, obtain any information important to the business from owners, brokers, county, and other sources.
- Contact and confirm with lending source, the availability of necessary funding and obtain necessary loan approval.
- Deliver to owner, proof of funds and loan availability as appropriate to confirm the ability to close.
- In order to move to closing sooner, if due diligence is satisfactory sooner than the allowed time, indicate that it is complete in writing to CGR, as the rest of closing process can be started sooner.
Preparing for Closing and Transition to New Space
- Obtain necessary forms and have them ready to submit for county occupancy permit
- Obtain necessary forms and have them ready to submit for county business license
- Obtain contact information for utilities (telephone, cable, gas, power), and start the process of establishing account
- Obtain a design and bids and have a contract in place for any necessary improvements so work can begin promptly on closing.
- Deliver design for approval from owner/condo association for the planned improvements.
- Obtain approval for any disturbance to common elements (e.g. roof mounted equipment, roof penetration for vents, etc) to ensure such work is planned ahead of time with qualified contractors and design is appropriate to protect common elements.
- Prepare drawings for any signage and obtain condominium association approval.
- Have an insurance policy for general liability and for property coverage for improvements and contents of your unit applied for and ready to be issued for your new unit. This policy should name the Overland Center Condominium as an additional insured.
- Contact Signs by Tomorrow Susan Behn sbehn@signsbytomorrow.com for a sign design. They are the approved vendor by the condo management. Submit that design for approval to condo management.
Typical Closing Steps
- Understand the requirements of the contract as to the last dates for closing, actual closing is typically held earlier when buyer and his lender are ready.
- Announce a planned closing date. This helps to ensure that the parties (brokers, bankers, escrow agents, owners, etc) involved in the closing process will all work together for your success.
- Review and sign various closing documents, most can be prepared and signed ahead of time and delivered to closing agent to be held in trust for your closing. This helps with avoiding last minute back and forth on the day of closing.
- Deliver your portion of payment to closing agent in good funds (wire transfer or certified check acceptable to closing agent), it is recommended that funds are delivered 1 day early to avoid any concerns about timely delivery of funds, the money is held by the escrow agent in trust for you.
- Stay in close contact with your lender throughout the process and ensure that you have good rapport and know all the persons involved in case any issues require resolution. Typically you will have a loan officer who is your primary contact, but there will be other members of the lender's closing team. If you are using a mortgage broker, ensure that the broker is staying in close contact with the lender and ensuring that they are reviewing all papers as early as possible.
- Decide on whether you want to buy title insurance coverage to protect your investment, in addition to the lender's title insurance, most buyers choose to buy this coverage, and you need to inform the escrow agent.
- At or before closing you will approve and sign a closing statement (also known as a HUD-1), and many other documents that are required by the contract, your lender, and the title company.
Post Closing Steps
- Order your utility accounts to be activated by calling the utilities.
- Ensure that your general liability and property insurance coverage has started, and condo association is named as an additional insured.
- Arrange to rekey the locks in your units soon after closing and certainly after your contractors are finished improving the unit to ensure your safety.
- Prepare construction improvement plans and have condo association approve it before submitting to county.
- Contact building management for base building plans to help your architect/engineer and contractor.
- Ensure that you are working with a reputable contractor who will stand behind the work ordered.
- For any penetration of roof, sprinkler system, exterior walls, please use only contractors approved by condo management to ensure building and roof warranty requirements are not violated.
- File for and obtain construction permits with county for any improvements only after getting approval from condo management first.
- File and obtain final inspections and approval for all construction changes to the Unit.
- Don't allow any contractor to do work without permit or do additional work without permit, as the permits ensure safety and compliance with your property insurance requirements. Any time savings are not worth the risk in the long run to have such violations on your property record.
- File and obtain occupancy permit. It is important to follow the county rules on occupancy which ensure safety of workers and occupants and not move into the unit until it is considered safe to do so by the issuance of the occupancy permit by the county. County will inspect prior to granting occupancy.
- File and obtain business license application for new location.