As a Buyer, it is important to remember you have a right to inspect and fully understand the physical and financial operation of a building. The seller has obligations based on the structure of the Agreement of Purchase & Sale and they need to supply the requested information without delay. These obligations are performance-based, and the Seller is bound to cooperate in a timely and professional manner. Time is of the essence for you to meet your obligations and deadlines! This is why an agreement of purchase and sale is key to the due diligence process and needs to be structured so everyone understands their obligations.
As a buyer, it is advisable to be prepared and know in advance the information you will be requesting from the seller. This will allow you to request the needed/wanted information from the seller as soon as the agreement of purchase of sale has been accepted. Time is of the essence and the sooner you request the information due to you the quicker you will be able to analyze it and waive conditions.
Some or all of these will be used depending on the building and personal preference and others will be mandatory for financing.
Master List of Due Diligence Package Items
- Pictures
- Agreement of Purchase & Sale
- Rent Roll
- Tenant Rental Status Report
- Survey
- Taxes- Interim or Final
- MPAC Statement Showing Individual School Tax Paid Per Unit
- Zoning and Permitted Uses
- Appraisal
- Mortgage Statement(s)
- Insurance Policy
- Insurance Quote
- Phase One Quote
- Management Contract
- Superintendent Contract
- Gas Bills
- Hydro Bills
- Water & Sewer Bills
- Other- Telephone, Cable TV. etc.
- Elevator
- Contracts
- Capital Item Improvement Leases
- Additional Revenue Contracts
- Floor Plans or Unit Square Footage
- Pest Control
- Snow Removal
- Land
- Maintenance & Repairs
- List of Chattels Included in Sale
- Fire Retro Fit Letter
- Fire Safety Plan
- Annual Fire Inspection Certificate
- Blueprints of Buildings
- Capital Item Repairs/Improvements
- Environmental Phase I
- Environmental Phase II
- Environmental Phase III Hazmat Removal
- Engineers Structural Report
- Asbestos Report
- Tenant Rental Leases & Rental Applications
- Commercial Lease(s) if Any