The Seller. Documentation Requirements

The Seller

As a seller member of a multifamily real estate group, you will need to prepare and submit various standard documents to facilitate the sale of your property. These documents help ensure a smooth transaction and provide necessary information to potential buyers. Here are the common types of documentation you may need to provide:

1. Property Information Package:

• Detailed property description

1. Survey. Recent land survey showing property boundaries and any easements or encroachments

2. Offering Memorandum (OM):

• Comprehensive document detailing the property’s features, financials, market analysis, and terms of sale

1. Financial Statements:

• T-12 Statements. Profit and loss statements for the past 1-3 years

• Rent roll (current tenant information, lease terms, and rental rates)

• Recent operating expense statements

1. Lease Agreements:

• Copies of all current lease agreements with tenants.

• Any amendments or extensions to leases

1. Title Report and Insurance:

• Current title report

• Proof of title insurance

1. Inspection and Maintenance Reports:

• Recent property inspection reports (e.g., structural, mechanical, electrical)

• Maintenance logs and records of major repairs or improvements

1. Property Tax Statements:

• Copies of recent property tax bills and proof of payment

1. Utility Bills:

• Recent utility bills (e.g., water, electricity, gas) to show operating costs

1. Zoning and Permits:

• Zoning verification letter

• Copies of any permits related to property use, improvements, or renovations

1. Environmental Reports:

• Phase I Environmental Site Assessment (ESA)

• Any subsequent Phase II ESA or remediation reports if applicable

1. Property Management Agreement:

• If a property management company is in place, provide a copy of the management agreement

1. Insurance Policies:

• Copies of current insurance policies (e.g., property insurance, liability insurance)

1. Disclosure Statements:

• Seller disclosure forms as required by local laws (e.g., disclosure of known property defects)

1. Real Estate Broker Representation Agreement:

• Agreement with a real estate broker or agent if they are handling the sale

1. Estoppel Certificates:

• Statements from tenants confirming the status of their leases and any claims against the landlord

1. Rent Concession and Abatement History:

• Records of any rent concessions or abatements given to tenants

1. Capital Improvements History:

• Documentation of any capital improvements made to the property, including costs and dates of completion

1. Personal Identification:

• Government-issued ID (e.g., passport, driver’s license)

1. Corporate Documentation (if applicable):

• Articles of incorporation or organization for the selling entity

• operating agreement or partnership agreement

• Corporate resolution authorizing the sale

Make sure to consult with a real estate attorney and your real estate Team to ensure you have all the necessary documentation and comply with local regulations. Proper preparation helps facilitate a smooth transaction and instill confidence in potential buyers.