Selling Alberta Commercial Property With Unfinished Construction or Tenant Improvements

1. Define the delivered property condition

Identify every title, unit and project area, then classify work as base building, landlord work, tenant improvement, site work, equipment, fixture or personal property. State what remains installed, excluded, leased, financed, abandoned or subject to removal.

A shell, warm shell, fixtured space or percentage-complete label has no reliable meaning without scope, drawings and observation. Describe the delivered condition from evidence.

• Property area
• Work category
• Installed scope
• Unfinished scope
• Ownership
• Delivered condition

2. Rebuild the contract and design record

Index contracts, drawings, specifications, professional seals, changes, site instructions, shop drawings, substitutions, schedules, progress reports, consultant certificates and correspondence. Identify the current design team and reliance or assignment rights.

An issued-for-construction drawing is not proof that the work was installed, inspected or accepted. A rendering is not an approved plan, and a buyer may need new professionals to assume responsibility.

3. Establish permits, inspections and occupancy status

Obtain development, building, electrical, plumbing, gas, HVAC, fire, sign and other permits; approved plans; inspection results; orders; expiries; and occupancy documents. Confirm the current permit holder and required next step with the authority having jurisdiction.

Calgary distinguishes inspection readiness and building occupancy from other completion criteria; Edmonton states that occupancy follows successful mandatory inspections. Existing physical use is not proof of permission to occupy or operate.

4. Reconcile invoices, liens and remaining obligations

Build a contract-level schedule of original value, approved changes, billed, certified, paid, held back, disputed, liened, committed and estimated-to-complete amounts. Order current title and claim documents and have counsel classify open risks.

Do not subtract amounts paid from a rough budget and call the remainder cost to complete. Unapproved changes, deficiencies, remobilization, escalation, professional work, permit fees and damaged or missing materials may change the result.

5. Inspect and protect incomplete work

Use qualified professionals to document structure, enclosure, moisture, temporary heat, utilities, fire protection, security, weathering, stored materials, open systems and unsafe areas. Define immediate preservation and access controls.

An incomplete site can deteriorate between marketing and closing. A dated tour or photograph is not a warranty of future condition, and buyers should not enter construction areas without written authority and safety controls.

6. Separate completion scenarios from current facts

Prepare owner-finish, buyer-finish, partial-demolition and alternative-use scenarios. For each, state the scope source, estimate preparer, date, contingency, permits, schedule, financing and unresolved dependencies.

A contractor estimate, landlord allowance or prior budget is not a fixed completion price. Commercially may organize scenarios but does not provide a cost estimate, construction schedule or feasibility opinion.

7. Test the buyer's intended use independently

Require buyers to verify land use, development approval, building classification, occupant load, accessibility, fire, ventilation, power, plumbing, parking, signage, health or sector approvals and lease rights for their own operation.

A former tenant's approved plan, partially installed kitchen, clinic, office or industrial fit-up does not establish approval, capacity or economic value for another user.

8. Control warranties, insurance and WCB evidence

Index warranties, bonds, insurance policies and claims, WCB clearances, equipment ownership, deposits, stored materials, commissioning, manuals, as-builts and service contacts. Identify what can be assigned and what may be void or unavailable.

A WCB clearance confirms specified account standing within its scope; it is not evidence that construction is complete or lien-free. A manufacturer's warranty may depend on installation, commissioning, payment and registration.

9. Market the property without promising completion

Use current photographs, source-labelled plans, a delivered-condition schedule, access rules and a controlled data room. State permit and inspection status as of a date and identify buyer-verification items.

Do not advertise 'turnkey,' 'ready for occupancy,' 'fully permitted,' 'lien free' or a guaranteed completion cost unless the operative evidence supports the exact statement. Correct all recipients when project status changes.

10. Tie price and closing to execution evidence

Compare offers on price, deposits, conditions, access, contractor interaction, assumed contracts, unfinished materials, title treatment, permits, completion responsibility, insurance, financing and timing. Have counsel define every transferred or retained obligation.

Commercially can market the property, qualify buyers and organize a source-controlled project record. It does not certify completion, cost, code, permits, occupancy, lien status, warranty transfer or future use, and it does not provide construction, engineering or legal advice.