Commercial shop due diligence: a practical checklist

Due diligence protects you from buying or leasing a unit that cannot be used the way you intend. This checklist is general guidance, not legal advice; have a qualified advocate review the documents for any specific transaction.

Title and approvals: ask for the chain of title documents, the approved building plan and the occupation certificate (for completed buildings) or the RERA registration details (for under-construction projects). Check that the unit number, floor and area in the documents match what you are shown.

Area: get the carpet area in writing, the definition used for any quoted rate, and a floor-wise split if the unit includes a mezzanine or upper level.

Use: confirm whether the intended business use is permitted by the building approvals, the society or developer rules and any applicable licences. Do not rely on a listing that says "suitable for" a use.

Charges: list every cost beyond the headline price or rent, including maintenance, deposits, parking, taxes, registration and any transfer or society charges, and ask which are included.

For pre-leased units: read the actual lease deed, including tenant, start and end dates, escalation, lock-in and termination clauses. Calculate yield yourself from the documented rent and your total acquisition cost.

On site: check the frontage, access, power connection, water, drainage and washroom, and look for encroachments or disputes with neighbours.