Acquisition and disposal
Due Diligence reporting is considered to be an essential part of the process, given the level of capital investment in property transactions today. The provision of clear and concise information regarding the construction type and quality is a core skill for our team.Working closely with our clients, we tailor our Due Diligence service to cover all property related matters.
Surveys can be limited to the building fabric or prepared to additionally cover heating, air-conditioning, ventilation and electrical installations. The detailed reporting enables prospective purchasers to evaluate the strengths and weaknesses of a property’s construction, assess the levels of deferred maintenance, minimise post-settlement surprises, and to understand the potential future repair requirements in order to make an informed decision.
Undertaking a due diligence survey provides added value on a cost benefit basis. The cost of the review and any subsequent renegotiation normally outweighs the cost of dealing with post settlement budget issues.
Vendors Surveys: Vendor surveys are designed to provide clear and concise information to assist with asset sales. For the Vendor, a timely and smooth sale process resulting in the best sale price is always the aim. For the purchaser, the information assists them in assessing whether a particular asset is suitable for their investment purposes.
By presenting your asset to market with information regarding construction type, quality and overall maintenance standards, you will be placing your asset ahead of other blind tenders and also negating potentially expensive pre-settlement negotiations if problems are found late in the purchasers ‘Due Diligence’ exercise. Reports of this nature are normally issued for information purposes only, with the expectation that a purchaser will verify any information they may wish to rely upon. Reports can be written in favour of a successful purchaser upon request. An additional fee may apply to allow for liaison and transfer of the report.
Schedules of conditions
Lease: Commercial leases often place a responsibility upon the tenant to keep the property in repair, and require the tenant to hand back the property in no better condition the building was in at the beginning of the lease. The objective of a Schedule of Condition is to minimise potential future disputes over a real or perceived change in condition. When used in a leasing situation a Landlord or a Tenant will commission such a report to benchmark the condition, layout and ownership of fixtures and fittings present. These reports are used at lease termination to determine the repairs required by the Tenant and the necessary level of reinstatement.
A schedule of condition includes photographic and narrative evidence of the condition of the premises at a given date of the survey.
Building Works: When used in a development situation a Main Contractor or Property owner may commission such a report to safeguard against potential disputes over the effects of an adjoining development on a property.
Reinstatement and wants of repair: Repairing and reinstatement clauses of a lease are implemented using a Schedule of Reinstatement and Wants of Repair. This document sets out items of disrepair where the tenant has failed to comply with the repairing clauses of the lease and also the works required to put the property back into repair. We can either provide an Interim or Terminal Reinstatement and Make Good Schedule depending on the stage of the lease.
Interim: An Interim Schedule is often prepared and presented to a tenant when a landlord is concerned over the lack of maintenance being carried out and wishes to ensure the property is well maintained during the lease term.
Terminal: A Terminal Schedule is normally prepared within the last six months of a lease term and will include an assessment of the reinstatement obligations regarding alterations carried out during the term. All our schedules are prepared based on a comprehensive review of the legal agreements, reference to statutory requirements, and include the full interpretation of the lease obligations, so that each party understands their legal responsibilities. All items of disrepair, reinstatement and re-painting, referenced to the appropriate lease covenants, as well as quantities and costs for the remedial works (where appropriate) are included. The statement of claim including all heads of claim such as loss of rent and professional fees are included where appropriate.
Negotiation of Settlements: We also negotiate settlements, ensuring an amicable settlement whilst maintaining positive Lessor/Lessee relations.
Assessments: We find Reinstatement and Make Good Assessments are also requested by tenants and some landlords where a party is seeking to understand financial implications associated with make good responsibilities. These reports are either used to set aside an accounting provision for the expenditure or to assist with negotiations of a new or extended lease term.
Code Compliance Certificates
Code Compliance Certificate Resolution: If you are having trouble with your building’s Code of Compliance Certificate, we can provide guidance and undertake the necessary steps to assist you in obtaining it.
Certificates of Acceptance and Safe and Sanitary Reports: If you have undertaken significant building work and you did not obtain a building consent, then you may be required by your Council to obtain a Certificate of Acceptance. We can assist by guiding you through the process and provide all necessary reports and documentation to allow you to comply with the Council’s requirements.