The business cannot outlast its property rights by assumption
A buyer may be acquiring operating assets while the landlord retains the site. The executed lease and amendments determine the available rights; a marketing summary or verbal statement is not a substitute. Have legal counsel review assignment, change-of-control, renewal, permitted use and default provisions.
Confirm the actual tenant and landlord entities, rent schedule, deposits, notices and any existing defaults. An asset sale and an entity-interest transaction may trigger different provisions.
| Issue | Record or question |
|---|---|
| Consent | Who must approve, on what conditions, and what evidence is required? |
| Remaining term/options | Can the buyer exercise valid options and on what timeline? |
| Costs | Base rent, escalations, CAM, taxes, insurance, utilities and pass-throughs |
| Repair/capital responsibility | Who owns and repairs building systems, drainage, equipment and pavement? |
| Use and access | Does the agreement permit the actual wash model, hours, signage and circulation? |
| Exit/default | Assignment, guarantees, removal obligations, restoration and remedies |
Coordinate the lease with lender and contract timing
A purchase closing deadline should reflect realistic landlord review and documentation. Record consent and financing dependencies before money becomes nonrefundable or the buyer assumes it can operate. Do not assume the landlord will respond within a universal number of days.
Ask how lease term, options and obligations affect the financing analysis. A debt model extending beyond reliable property control needs explicit review; it is not cured by a positive first-year return.
Normalize the rent the buyer will actually pay
Use the continuing rent and pass-throughs rather than a seller’s historical related-party arrangement. Confirm how rate changes, taxes, insurance and common costs are allocated. Avoid deducting rent twice if it is already fully included in normalized earnings.
If actual ongoing occupancy costs increase by an illustrative $12,000 a year, the acquisition cash scenario should reflect that reduction. It is an assumption to verify, not an automatic adjustment for every leased wash.
Document the handoff
Obtain executed consent/assignment documents, the agreed treatment of deposits, keys/access, service responsibility and any release or continuing guarantee. Confirm who supplies landlord notices and what remains outstanding.
Use the readiness checklist and cash-return calculator to connect property obligations to the wider deal. This checklist is educational, not a legal opinion about a particular Indiana lease.