All Forum Posts by: Susan Anderson

Specifically, the interested party refuses to share a balance sheet. He will provide a tax returns.

I own land on a very busy street. Walmart, Starbucks, etc are all on this busy road. I have an individual who would like to lease my land for 15 years (triple net lease) with three 5 year options. This individual has started, developed, and sold many franchises. We have negotiated and agreed to initial LOI terms. The interested party agreed to share financials upon reaching consensus and signing the LOI.
We have asked to see a balance sheet and profit/loss from the interested party. My real estate agent said that usually land owners do not ask for financials. She said it is not common to ask for such detailed financial documents.
If I go to the bank I am required to provide a profit and loss, balance sheet, credit report, bank statements, etc. The individual renting my land will be tearing down our old buildings and developing the land, which is a lot of risk for this developer. However, I feel as though there is also risk for us as well. I will be on the hook for a 6-figure commission to the real estate agent for this commercial transaction. I would like to ensure that it is a successful endeavor.

Is it atypical for a land owner to want financials from a potential land lessee?

Thank you kindly for your input.