When listing a property on Brevitas, especially for commercial real estate, having the right documentation can make or break a deal. Investors and potential buyers want to have access to detailed, accurate information that helps them assess the value and condition of the property. Including comprehensive documents not only enhances transparency but also builds trust and speeds up the due diligence process. Here's a guide on the types of documents to include, how to protect sensitive information, and how Brevitas' platform makes document management seamless.
Key Documents to Include on Your Brevitas Listing
Disclosure Documents
Disclosure documents are critical to providing a full understanding of the property and ensuring that all pertinent information is available to potential buyers. In residential real estate, disclosures are often handled by third-party tech providers who manage document delivery. Commercial real estate is catching up, but essential disclosure documents include:
- Floor Plans: Detailed layouts of the property, showcasing space allocation and dimensions.
- Property History: Any significant repairs or upgrades, such as a new roof, HVAC system, or electrical work, should be listed.
- Lot Information: Boundaries, zoning information, and any environmental restrictions or easements that may affect the property's use.
- Permits & City Information: Documents showing any relevant permits, building codes, or records with local municipalities.
- Disclosure of Known Issues: Any structural or legal issues that may affect the property, such as pending litigation or past disputes.
Financial Records
Investors need access to the financial details of a property to evaluate its investment potential. Common financial documents to include are:
- Operating Expenses: Detailed breakdown of ongoing operational costs, including utilities, maintenance, and insurance.
- Income Statements: Historical income data, especially for multi-family, retail, or commercial properties, showing rental income and occupancy rates.
- Tax Records: Provide past property tax records for transparency and to avoid any surprises during the purchase process.
- Profit and Loss (P&L) Statements: Essential for income-generating properties, showing the net operating income (NOI) and other financial health indicators.
Property Condition Reports
Having an updated property condition report (PCR) is crucial for assessing the physical condition of the property. This report may include:
- Inspection Reports: Full details from recent inspections, whether structural, electrical, or environmental.
- Maintenance Records: A history of repairs and maintenance, including major upgrades, is a valuable asset to potential buyers.
- Environmental Impact Reports: If the property is subject to any environmental assessments, include these as well.
Title Documents
These documents verify ownership and help ensure there are no liens or disputes related to the title of the property:
- Title Deeds: The most recent deed should be included, showing the legal owner.
- Easement or Encumbrance Information: Any legal rights held by others over the property should be clearly disclosed.
Setting Document Access Permissions on Brevitas
When posting these documents, not all should be publicly accessible due to the sensitive nature of some information. On Brevitas, you have the flexibility to set certain documents as protected. This allows you to screen or vet potential buyers before granting them access. For instance:
- Confidential Financials: These could be restricted to qualified buyers only.
- Private Reports: Inspection or legal reports can be made available only after a potential buyer has signed an NDA or provided proof of financial ability.
This screening process ensures that you're only sharing sensitive information with serious buyers, protecting both your privacy and the integrity of the deal.
Brevitas Deal Rooms: Simple, Secure Document Sharing
The simplicity of Brevitas' Deal Room functionality allows you to efficiently manage and share all of these documents with potential buyers. With a deal room, you can:
- Track Views: See which potential buyers have accessed your documents and gauge their interest.
- Control Access: As mentioned, you can set permissions on sensitive files to control who gets to see what.
- Centralize Information: Keep all relevant documents in one secure location, ensuring that nothing gets lost in the shuffle and everyone involved in the transaction is working from the same set of data.
Residential Real Estate Leading the Way
In residential real estate, providing easy access to important documentation is already common practice. While these disclosures are often facilitated by third-party tech platforms, they allow for quick access to essential details such as floor plans, permits, and more. Commercial real estate is catching up by streamlining document sharing, and Brevitas is at the forefront of this transition.
What Not to Forget
It’s easy to get caught up in presenting the property’s positive attributes, but complete transparency is key to building trust with potential buyers. Make sure to include:
- Disclosures on Known Issues: Whether it’s a zoning issue, a pending legal dispute, or a major structural defect, be upfront to avoid complications later.
- Large Purchase Records: If you’ve invested in major upgrades (like a new roof or HVAC system), include records showing the cost, contractor, and completion date to demonstrate that these are recent and reliable updates.
Conclusion
Including the right documents in your Brevitas listing ensures that buyers have the information they need to make a well-informed decision. From disclosure documents to financials and property condition reports, providing comprehensive documentation builds trust and speeds up the transaction process. Brevitas’ flexible document protection features and Deal Rooms make it easy to share sensitive information while keeping everything organized and secure.
When you’re ready to list, leverage Brevitas’ tools to provide a transparent, efficient, and secure experience for buyers—getting you to the closing table faster and with fewer hurdles.
