How do I check a Christmas tree lot’s location agreement with the property owner?
Get a copy of the agreement and read who the parties are, the dates, the fee, the permitted use and whether it can be assigned to you. Then speak to the property owner yourself. A lot is only as secure as its permission to be there, so ask your lawyer to review it.
Many tree lots run on a short seasonal arrangement, sometimes just a handshake. Ask whether there is a written agreement and, if not, press for one before you rely on the site. Read who signed, whether the seller is the named party, and whether it covers the dates you actually need, including setup and takedown.
Look at terms that matter to a buyer: the fee and how it is calculated, any share of sales, who handles power, lighting and security, what must be left clean, and what insurance is required. Ask whether the owner can end it early, and whether renewal is automatic or requires a new conversation each year. Check transfer. Some agreements cannot move to a new operator without the owner’s consent. Ask the seller whether the owner has been told about the sale, and ask the owner whether they will deal with you. Finally, think about your timeline. If the owner wants to redevelop or rent to someone else, a lot can vanish. Your lawyer can read the document and the commercial lease terms, and tell you what to confirm in your purchase agreement. Ask also whether the lot shares the site with other uses, such as a store’s parking, because the owner may need the space back on short notice at the busiest time.
Key takeaways
- Get the agreement in writing and confirm the seller is the named party.
- Speak with the property owner before you rely on the site.
- Ask your lawyer whether the agreement can transfer to you.
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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