Before committing to a commercial purchase, establish what you are buying, how it can be used and which obligations come with it. A good information pack helps organise the investigation, but it does not replace advice from professionals acting for you.
Use this checklist to prepare questions for the listing agent, lawyer, lender, accountant and relevant building specialists. The extent of the investigation should reflect the property, the proposed use and your circumstances.
Request the actual leases, variations, tenancy schedule, rent-review information and relevant financial records. Reconcile advertised income with the documents rather than assuming an annual headline is the amount you will receive.
Identify current lease expiries, renewal rights, review provisions, guarantees, incentives and known arrears or disputes. Ask which expenses can be recovered and which remain with the owner. Check whether income depends on one tenant or a few lease events occurring at similar times.
If vacant possession or your own occupation is important, have your lawyer confirm the arrangements. Do not assume a tenant will leave, renew or accept a changed use.
Obtain appropriate inspection and technical advice on condition, services and likely maintenance or capital work. Ask for available consent records, code compliance documentation, building warrant of fitness information and reports relevant to the property. A document’s presence is not proof that every proposed activity or alteration is approved.
For Christchurch property, request available seismic reports and information about earthquake damage, repairs and strengthening. Ask a suitably qualified engineer to explain the report’s scope, date, assumptions and relevance to your proposed use. A quoted NBS percentage alone does not answer every building-risk question.
Christchurch City Council explains what may be held in a property file and provides earthquake-prone building information. Check the actual property records and current requirements with the appropriate advisers.
Investigate zoning, site-specific planning provisions, existing consents and any requirements for the activity or changes you propose. The Christchurch District Plan guidance explains how to find the relevant planning information.
Check practical suitability too: loading, power, access, parking, accessibility, signage, extraction or other specialist services. A use advertised as possible still needs investigation. Planning approval and building approval address different matters.
Seek insurance terms and confirm lender requirements early. Ask your accountant about the structure and GST or other tax implications of the particular transaction; do not assume the wording of an advertisement determines your position.
Ask your lawyer to explain the method of sale, conditions, deadlines, deposit, settlement, lease transfers and any works or warranties in the agreement. Allow time for investigations before any unconditional commitment.
Explore commercial properties for sale and contact the named agent for the available information pack and inspection arrangements. Our buying and investing guide helps frame the initial decision, and the Real Estate Authority provides further commercial property guidance.
This checklist is general preparation, rather than a complete due-diligence assessment or legal, engineering, tax or investment advice.