INVESTOR ACQUISITION OF MULTIFAMILY OR COMMERCIAL REAL PROPERTY – CHECK LIST

DUE DILIGENCE INVESTIGATION ITEMS
1) Inspection of Property
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2) Inspection of Books and Records – If Applicable
a) Income/Operating Statements
b) Rent Roll - Security Deposits
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3) Environmental, Termite and/or Moisture Reports
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4) Insurance and Paid Receipts
a) Hazard or Builder’s Risk
b) Liability
c) Flood
d) Business Interruption
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5) Title Commitment
a) Mechanic's Lien Coverage
b) Zoning Endorsement
c) ALTA 8-Environmental
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6) Legal Description
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7) Appraisal
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8) Physical Survey
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9) Evidence of Compliance with Governmental Laws
a) Americans with Disabilities Act
b) Chesapeake Bay Preservation Act
c) Wetlands
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10) Evidence of Zoning Classification
a) Lot Size - may be grandfathered non-conforming use
b) Permitted Uses
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11) Evidence of Street Access and Utility Availability
a) Water
b) Sanitary Sewer
c) Drainage
d) Electric
e) Gas
f) Telephone
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12) Building Permits
a) Scope of Rehab
b) Cost vs. % of assessed value
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13) Plans, Drawings and Specifications
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14. Non-Bankruptcy Status of Seller
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DOCUMENTS RELATING TO ACQUISITION OF PROPERTY
15. Contract
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16) Deed
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17) Bill of Sale – If Applicable
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18) General Assignment
a) Licenses and Permits
b) Service Contracts
c) Management Contracts
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19) Assignment of Rents, Leases and Security Deposits
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20) Closing Statement
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21) 1445 Tax Certification
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22) 1099 Tax Certification
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23) Commercial Affidavit
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24) Virginia Department Taxation Form R-5
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25) Seller/Owners Affidavit
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26) Owner's Title Policy - Mortgagee Title Policy
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27) Organizational Documents of Seller Entity
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28) Resolution/Unanimous Consent of Seller Entity
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29) Evidence of Good Standing of Seller Entity
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NOTE: The foregoing Check List is for educational purposes and contains items that may not be applicable to all transactions which can vary substantially based on the particular facts and circumstances of and type of property to be acquired, as well as its condition. Therefore, the Check List should not be relied upon as a substitute for individualized legal advice addressing one’s particular situation.