A deposit figure can make a purchase look affordable while leaving the most important questions unanswered. How much will the lender release? Which costs fall due first? What happens if the property valuation is lower than the agreed price?
Use this checklist with your broker, solicitor and accountant. It is designed for an established commercial property purchase. Development, construction and SMSF transactions need separate advice and preparation.
1. Describe the purchase
- Property address, advertised use and intended use.
- Buying entity and owners, confirmed with your legal and tax advisers.
- Owner-occupied premises, leased investment or vacant property.
- Proposed price, deposit, contract date and settlement date.
- Contract, title information and available property reports for professional review.
For a leased investment, obtain the full lease and amendments, rent ledger, outgoings and any incentives. For premises your business will occupy, explain which business will pay the loan and provide its financial information. Ask the lender to check the actual property before relying on an indicative borrowing amount.
2. Confirm the finance assumptions
- Which lender and product are being considered?
- What income evidence is required, and what remains missing?
- What property value has the lender accepted, if any?
- What is the gross loan, and what fees will be deducted?
- What conditions remain before funds can be released?
- What are the loan term, repayment basis, review requirements and exit costs?
For example, Thinktank publishes several commercial documentation routes. Ask which route fits your income and property, then compare the complete quote. A product label or published maximum is not approval for your purchase.
3. Map every cash payment
For each item, record the amount, what is already paid, the unpaid balance, its due date and who will confirm it. Mark an unknown amount as unknown.
| Item | Amount still due | Due date | Confirmed by |
|---|---|---|---|
| Contract deposit still unpaid | ________ | ________ | ________ |
| Balance of contract price after the full contractual deposit | ________ | ________ | ________ |
| Transfer duty | ________ | ________ | ________ |
| GST, if additional under the contract | ________ | ________ | ________ |
| Legal, valuation and due-diligence costs | ________ | ________ | ________ |
| Lender fees paid separately from the loan advance | ________ | ________ | ________ |
| Settlement charges and adjustments | ________ | ________ | ________ |
Show any unpaid deposit separately from the balance due at settlement. Calculate that balance after the full contractual deposit, including the unpaid part listed above. Do not count the deposit twice.
Ask your advisers to confirm the contract's GST treatment. Include an additional GST payment only where it is not already counted in the contract total. In NSW, GST can affect the value used for duty. The ordinary NSW payment deadline is the earlier of settlement or three months after the contract is signed. Confirm your transaction's treatment and deadline with your solicitor.
4. Check the cash available on each date
Use the net loan proceeds after withheld fees. Do not deduct those same fees again. Keep expected tax credits and unconfirmed borrowing separate from cash available to pay a bill. Money needed before settlement cannot depend on loan funds that will only be released at settlement.
If the lender accepts a lower value or advances less than expected, update the cash requirement before deciding whether the purchase remains affordable. Read our cash-to-complete example for the calculation.
Bring the unresolved items to the conversation
Send Flexdoc the property details, proposed price and timing, available income evidence and a list of the figures still awaiting confirmation. We can discuss the finance options alongside your advisers' confirmed purchase costs. Book a commercial property finance conversation.
General information only. Your circumstances have not been assessed. Lending criteria, terms, fees and approval apply. Seek appropriate tax and legal advice.