Due Diligence
 

Due Diligence

As a seller, it is important to remember a buyer has a right to inspect and fully understand the physical nature of the building and the financial operation side of the building. It is best to put yourself in the shoes of the buyer and understand what obligations they have to themselves and their financial partners, including financial institutions.

By putting yourself in their shoes you will be prepared for their request and be able to respond in a professional and timely manner. This will speed up their process and allow them to meet the agreed-upon timelines set out in the agreement of purchase & sale.

There is nothing worse than on the day of waiving conditions as outlined in the agreement of purchase & sale you are notified by the buyer that he/she has not achieved financing or other obligations. Remember the importance of time is of the essence for everyone! Even when it isn’t in the agreement of purchase and sale. 

Some or all of these will be used depending on the building and personal preference and others will be mandatory for financing. 

  1. Pictures
  2. Agreement of Purchase & Sale
  3. Rent Roll
  4. Tenant Rental Status Report
  5. Survey
  6. Taxes- Interim or Final
  7. MPAC Statement Showing Individual School Tax Paid Per Unit
  8. Zoning and Permitted Uses 
  9. Appraisal
  10. Mortgage Statement(s)
  11. Insurance Policy
  12. Insurance Quote
  13. Phase One Quote
  14. Management Contract
  15. Superintendent Contract
  16. Gas Bills
  17. Hydro Bills
  18. Water & Sewer Bills
  19. Other- Telephone, Cable TV. etc.
  20. Elevator 
  21. Contracts
  22. Capital Item Improvement Leases
  23. Additional Revenue Contracts
  24. Floor Plans or Unit Square Footage
  25. Pest Control
  26. Snow Removal
  27. Land
  28. Maintenance & Repairs
  29. List of Chattels Included in Sale
  30. Fire Retro Fit Letter
  31. Fire Safety Plan
  32. Annual Fire Inspection Certificate
  33. Blueprints of Buildings
  34. Capital Item Repairs/Improvements
  35. Environmental Phase I
  36. Environmental Phase II
  37. Environmental Phase III Hazmat Removal 
  38. Engineers Structural Report
  39. Asbestos Report
  40. Tenant Rental Leases & Rental Applications
  41. Commercial Lease(s) if Any