Commercial Real Estate Agents – Record Keeping and Negotiating Tips

Given that commercial real estate is negotiation orientated, the integrity of your records and your record keeping processes is paramount for every deal and every listing in which you have an involvement. These are the rules that you can apply to your documentary processes.

  • Each transaction that is pending should have its own unique file with the records therein kept in a chronological order.
  • On the inside of the folder, staple the business cards relevant to the parties within the transaction.
  • On the inside of the folder, glue an information sheet which allows you to pencil in the latest updates of negotiation.
  • Create a standard form which provides for dates and subject title, which can then be used to record detailed notes of any meetings and conversations. These forms will then be separate pieces of paper relating to each discussion which are then recorded on your file chronologically.
  • Create a transaction information sheet which contains all the critical elements of the negotiation and property. You should have one form for sales, and one form for leasing.

The sales form should include comments relating to:

  • Description of the property involved
  • Details of the properties owner, address and contact details
  • Asking price details
  • A copy of the appointment to act
  • Confirmation of marketing arrangements
  • Copy of any advertising approved and implemented
  • Confirmation of special promotional requirements
  • Confirmation of special instructions from the seller in the marketing of the property
  • Details of any inspection arrangements and outcomes
  • Outgoings details and history
  • Rates and taxes details
  • Survey plans and other plans of the property
  • History of the property
  • Building condition report and any inspection records
  • All tenancy and lease details
  • Details of any existing incentives that are active on current leases within the property
  • Insurance details
  • Appraisal details and comparable property analysis
  • Copies of all leases
  • Plans of the property
  • Title search details
  • Details of any encumbrances, or other matters that impact the property title and property useage
  • Council search details
  • Details of property services and amenities
  • Status reports on any outstanding property documentation

The leasing form should include comments relating to:

  • Property involved
  • Owner’s name address and telephone number
  • Copy of your appointment to act
  • Copy of your draft lease to be used in the transaction
  • Comments from the landlord regards use of solicitors for lease documentation
  • Details of marketing instructions and arrangements
  • A copy of any advertising approved by the landlord and implemented
  • Prospective tenants contact details
  • Rental details and instructions
  • The rental appraisal details and comparable property details
  • Outgoings details and history
  • Incentives details to be provided in any lease
  • Rates and taxes information
  • Maintenance arrangements
  • Insurance details and liability definitions between the tenant and the landlord (eg plate glass)
  • Size of the tenancy together with surveys and plans
  • Make good requirements of the landlord on the tenant
  • Tenancy condition report
  • Inventory of inclusions and exclusions in any lease situation
  • Details of any inspection arrangements and outcomes
  • Plans of the tenancy space
  • Details of the existing fitout
  • Length of the lease, and the option
  • Special conditions of the lease to be implemented
  • Required rent review status for the term of the lease
  • The landlord improvement details
  • The tenant improvement details
  • Details of property services and amenities
  • Status reports on any outstanding documentation relating to the leasing of the property

Never release your files to any other parties without the approval of your manager. Support any critical conversation, instruction, or decision with a written record of the matter to back to the person who made it.

The above information can be shaped and expanded subject to the type of property that you work with, and the office procedures within your business. Importantly the keeping of records will protect you should disagreement or the threat of legal action be imminent.

1 Comment

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    November 9, 2012

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