Buyer & Broker Anatomy of an Out of State NNN Transaction

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A. Beginning

  1. Buyer assembles Proof of Funds (POF) document.
  2. Buyer and Broker talk about deals.
  3. Broker searches for deals and sends them to Buyer.
  4. Broker identifies a property and requests Offering Memorandum (OM).
  5. Broker sends OM or 1-page Listing to Buyer
  6. Buyer responds favorably – with Price and Terms.
  7. Broker requests Confidentiality Agreement from Seller.
  8. Broker writes Letter of Intent (LOI) outlining Price & Terms of potential offer.
  9. Broker sends LOI and Confidentiality Agreement (CA) to Buyer via Docusign. Buyer signs.
  10. Broker engages Lender for Term Sheet.
  11. Broker sends LOI, CA and POF to agent representing deal.
  12. Seller Accepts or Counters LOI. 

B. Mutual acceptance of CA and LOI

  1. Broker requests Property Lease from Seller.
  2. Upon Brokers receipt of Lease, Broker reviews and sends to Buyer and Buyer’s Attorney.
  3. During Exclusivity Period, Broker either drafts offer or Seller sends PSA to broker.
  4. roker engages in-state representation of Buyer.
  5. Upon Brokers receipt of PSA, Broker reviews and sends to Buyer and Buyer’s Attorney.
  6. ​Attorney’s edits are refined and finalized.

C. Mutual acceptance of PSA.
​Official clock starts.  Due Diligence Begins.

  1. Broker immediately requests Estoppel and SNDA from Seller and Tenant.
  2. Title Prelim is requested or delivered
  3. Broker engages Lender to work with Buyer.
  4. Broker reviews Books & Records and sends to Buyer.
  5. Broker reviews Title for easements and clouds.
  6. Broker opens escrow and Buyer wires deposit to Escrow.
  7. Broker engages Environmental Company for Phase 1 inspection.
  8. Broker engages Site Surveyor for Survey at the property.
  9. If needed, Broker engages Physical Inspection team for site visit.
  10. Broker reviews Books & Records and sends to Buyer.
  11. Broker coordinates and executes in-state representation agreement.
  12. Broker tracks progress on SNDA and Estoppel.
  13. Contingencies are removed.
  14. Broker works with Lender to close.
  15. Depending on State, a table close may be necessary (where Buyer visits Title office to sign documents in person).