Checklis

Bedrock Publications

12 P.M. PST, August, 2012
Contact:  Leila Banijamali
Phone:   415-369-9715
Email:  inquiry@bedrocksf.com

San Francisco, California | August 6, 2012

About the Checklist for the Purchase or Sale of Real Estate in California

The following checklist should be used in conjunction with an agreement for purchase and sale in California. This agreement is provided in template form by the California Association of Realtors and, for San Francisco properties, the San Francisco Association of Realtors. Certain properties, including commercial properties, new developments, hotel properties, will require the use of different, customized forms. Moreover, some of the items on this list will not be applicable in every transaction and are included for illustrative purposes only. Bedrock always recommends consulting with an experienced real estate lawyer or broker if there are any doubts.

Closing Checklist

Parties:

  • Seller
  • Seller’s Attorney and/or Broker
  • Purchaser
  • Purchaser’s Attorney and/or Broker
  • Lender
  • Title Company
  • Consultants (including names and addresses of stagers, contractors, engineers, architects, surveyors etc.)
  • Appraiser

Loan Documents:

  • Pre approval letter (supplied by purchaser’s lender);
  • Promissory note (supplied by lender);
  • Deed of trust (supplied by lender and must be notarized and recorded);
  • Assignment of rents and leases (supplied by lender and must be notarized and recorded);
  • Security agreement (supplied by lender);
  • Environmental indemnification agreement (supplied by lender);
  • UCC-1 Financing Statement (supplied by lender and filed with the Secretary of State);
  • UCC-1 Fixture Filing (supplied by lender and recorded).

Purchase and Sale Documents:

  • Listing Agreement for the representation of seller (maintained in confidence between seller and listing broker);
  • Cover letter to accompany purchase agreement (supplied by buyer’s attorney or broker);
  • Personal letter to accompany purchase agreement (supplied by buyer);
  • Agency disclosure (supplied by buyer);
  • Trust advisory for trust sales (supplied by buyer or seller);
  • Pre approval letter from lender (supplied by lender);
  • Verification of deposit funds in liquid form (supplied by buyer);
  • Seller’s disclosure package (supplied by seller);
  • Non-foreign affidavit (supplied by seller);
  • Contract for Sale and Purchase of Real Property (supplied by buyer as part of the offer package);
  • Grant deed (supplied by seller);
  • Bill of Sale (supplied by seller);
  • Assignment of leases and contracts (supplied by seller);
  • Withholding certificate (FIRPTA) (supplied by seller);
  • Earnest money escrow instructions (supplied by purchaser and seller);
  • Joint escrow instructions (supplied by purchaser and seller);
  • Purchaser’s escrow instructions (supplied by purchaser);
  • Seller’s escrow instructions (supplied by seller).

Due Diligence Items:

  • JCP-LGS Report (supplied by the seller and contains environmental reports, natural hazards disclosures, and property tax liabilities);
  • Plans and specifications (supplied by seller);
  • Soil report (supplied by engineer);
  • Engineering report (supplied by engineer);
  • MAI Appraisal (supplied by appraiser);
  • Architect’s certification (supplied by architect);
  • Audited income and expense statement (supplied by seller);
  • Certified income and expense statement (supplied by seller);
  • Copies of certificates of occupancy (supplied by seller);
  • Copy of management agreement (supplied by seller);
  • Copy of construction agreement (supplied by seller);
  • Copies of concessionaires’ agreements (supplied by seller);
  • Copies of other operational agreements (supplied by seller);
  • Rent roll (supplied by seller);
  • Tenant estoppel certificates (supplied by seller in cooperation with tenant);
  • Tenant biographies (supplied by seller);
  • Copies of tenant leases (supplied by seller).

Purchaser’s LLC Company Formation Documents:

  • LLC-1 stamped Articles of Organization (sourced from Secretary of State);
  • LLC Operating Agreement (supplied by purchaser);
  • Certificate of Good Standing (sourced from Secretary of State).

Seller’s Formation Documents (for Corporations):

  • Certified Articles of Incorporation (sourced from Secretary of State);
  • Certified Bylaws of the corporation (supplied by seller);
  • Certificate of Good Standing (sourced from the Secretary of State or Franchise Tax Board);
  • Certificate of Status (sourced from the Secretary of State).

Title, Survey, and Other Closing Items:

  • American Land Title Association (ALTA) survey (supplied by the surveyor);
  • Surveyor’s certificate (supplied by the surveyor);
  • Preliminary report with exceptions (supplied by the title company);
  • Owner’s title insurance policy with endorsements (supplied by the title company);
  • Lender’s title insurance policy (suppled by the title company);
  • Tax service contract (supplied by the title company);
  • Closing statement (supplied by the title company);
  • UCC-3 Search report on seller (supplied by the seller).

 

Bedrock’s Principal Attorney, Leila Banijamali, is a licensed California real estate broker and she represents investors in the purchase or sale of residential real estate at Bedrock and through her affiliation with Vanguard Properties, San Francisco’s top residential real estate agency in the coveted District 9 (SOMA, Yerba Buena, The Mission, Mission Bay, and South Beach). Contact Leila for a complimentary consultation and investor report.

THE CONTENT OF THIS PUBLICATION SHOULD NOT BE REGARDED AS ADVERTISING, SOLICITATION, LEGAL ADVICE, OR ANY OTHER ADVICE ON ANY PARTICULAR MATTER. THE PUBLICATION OF ANY CONTENT IS NOT INTENDED TO CREATE AND DOES NOT CONSTITUTE AN ATTORNEY-CLIENT RELATIONSHIP BETWEEN YOU AND BEDROCK. YOU SHOULD NOT ACT OR REFRAIN FROM ACTING ON THE BASIS OF ANY CONTENT INCLUDED IN THIS PUBLICATION WITHOUT SEEKING THE APPROPRIATE LEGAL OR PROFESSIONAL ADVICE ON THE PARTICULAR FACTS AND CIRCUMSTANCES AT ISSUE.