Comparing Commercial Property Offers in Alberta

1. Normalize the complete consideration

Compare fixed price, price per acre or square foot, area assumptions, allocation, assumed obligations, vendor financing, earnouts, holdbacks, included assets and adjustments on the same basis.

Separate cash due at closing from deferred, contingent or disputed amounts. A larger nominal price can produce less immediate cash or more collection risk.

• Total consideration
• Cash at closing
• Deferred amount
• Deposit
• Conditions
• Closing date

2. Verify the buyer and signing authority

Record the legal purchaser, jurisdiction, signing authority, beneficial ownership or control information required by the transaction, proposed nominee or assignment rights and the entity expected to close.

Review evidence of equity, financing path, relevant acquisition experience and required partner, board or third-party approvals. Treat confidential information through an approved, staged process.

3. Compare deposits on real terms

Compare amount, payment timing, holder, increase schedule, trust terms, interest, closing credit and the events governing release. A large deposit can provide little practical certainty if payment is deferred or release remains broadly conditional.

Do not state that a deposit is secure, non-refundable or forfeited without legal review. Verify funds only through the brokerage's compliant process.

4. Map financing and equity dependencies

Distinguish cash, new senior debt, assumed debt, vendor financing, investor equity, asset-sale proceeds and other sources. Identify appraisal, lender, investor and security conditions and whether evidence has been delivered.

A lender indication, term sheet or conditional approval is not funded money. Compare the time and reports required to reach a binding commitment and closing.

5. Price every condition and access right

Create a side-by-side schedule of financing, title, zoning, environment, building, leases, financial, appraisal and approval conditions. Compare beneficiary, evidence, deadline, extension rights and termination mechanics.

Review site access, intrusive testing, tenant contact, restoration, insurance, confidentiality and report ownership. Long control and broad access create owner cost even before a sale becomes unconditional.

6. Compare timing and cash-flow impact

Map acceptance, document delivery, access, condition expiry, deposit increases, extensions, closing, possession and post-closing work. Calculate carrying cost, operating disruption and foregone alternatives over the proposed control period.

For phased or delayed closings, model price escalation, taxes, leases, improvements, partial releases and what happens if later stages fail.

7. Review representations, indemnities and seller work

Schedule requested representations, warranties, covenants, indemnities, survival periods, holdbacks and caps. Identify information the seller can support, matters requiring qualification and work to be completed before or after closing.

A higher price may carry more repair, leasing, environmental, tax or operating exposure. Counsel should assess legal effect and remedies; the commercial comparison should expose the operational and financial burden.

8. Resolve assignment, control and backup rights

Compare assignment, nominee, partnership and change-of-control rights and the continuing liability of the original buyer. Understand which entity posts the deposit, performs diligence, controls extensions and ultimately acquires.

Define the owner's ability to continue marketing, accept a backup offer or terminate after missed milestones. Preserve a credible alternative if the selected buyer does not proceed.

9. Use an evidence-led decision record

Record each term, source, open item, responsible advisor and update. Keep the stated price separate from an unsupported judgment about certainty; do not turn incomplete facts into a fake weighted score.

Commercially can prepare a normalized commercial comparison and coordinate negotiation. The owner and its lawyer, accountant and other advisors decide legal, tax, financing and acceptance questions.