Due diligence is the essential investigation that is carried out prior to the parties agreeing the terms of the Lease.
A typical commercial transaction includes a degree of due diligence, but often Tenants think they have all the information they need and don’t like devoting any extra time to this part of the process.
The Commercial Property Standard Enquiries (“CPSE”) come in the form of four lengthy questionnaires that ask the Landlord an array of questions in relation to the premises. Which form, depends on the particular transaction.
It is important that if you are a Tenant interested in taking on a substantial new lease, that you allow time for your solicitor to gather as much information as possible to find out as much as you can about the premises you will be leasing. This is an important tool, as it could help you negotiate the terms more effectively and accurately. Some lease transactions fall through as a result of due diligence.