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    6.2 Due Diligence Checklist Template V2 3

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    Fábio Miguel Azedo
    The document provides a checklist of due diligence items to complete prior to closing on a real estate acquisition. It includes sections on legal, financial, entitlement, physical, environmental, project sponsor, market, pre-sales, pre-closing, and debt items to review.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    6.2 Due Diligence Checklist Template V2 3

    Uploaded by

    Fábio Miguel Azedo
    82 views3 pages
    The document provides a checklist of due diligence items to complete prior to closing on a real estate acquisition. It includes sections on legal, financial, entitlement, physical, environmental, project sponsor, market, pre-sales, pre-closing, and debt items to review.

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    The document provides a checklist of due diligence items to complete prior to closing on a real estate acquisition. It includes sections on legal, financial, entitlement, physical, environmental, project sponsor, market, pre-sales, pre-closing, and debt items to review.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    82 views3 pages

    6.2 Due Diligence Checklist Template V2 3

    Uploaded by

    Fábio Miguel Azedo
    The document provides a checklist of due diligence items to complete prior to closing on a real estate acquisition. It includes sections on legal, financial, entitlement, physical, environmental, project sponsor, market, pre-sales, pre-closing, and debt items to review.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Due Diligence Check List Prior to Closing

    Project Name:
    Target Close Date:
    LEGAL, TITLE AND SURVEY Status Comments Assigned
    Investment Entity (typically pass thru entity)
    Review of Operating Agreement
    Articles of Organization
    Operating Agreement
    Exhibits to Operating Agreement
    Distribution Calculation Example
    Investment/Asset Operations Plan
    Organizational Chart
    Reporting Template
    Federal Employer (Tax) ID #
    Letter of Intent
    Purchase and Sale Agreement
    Assignment of Purchase and Sale
    Exhibits to Purchase and Sale
    Posting of deposit
    Assignment of leases and rents
    Bill of Sale
    Deed of Trust
    Title
    Preliminary title report
    Survey
    Title review by counsel
    Title exceptions
    Final title policy
    Reciprocal-use easements and restriction agreements
    Escrow
    Escrow closing statement
    Escrow instructions
    Receipt of final
    Description of the property/ Map
    Review ground lease documents (if any)
    FINANCIAL AND OPERATIONAL Status Comments Assigned
    Allocation memo to the file
    Business Plan
    Proposed budget and pro forma
    Insurance coverage information
    Builders' Risk (A rated carrier)
    Business Disruption
    Commercial General Liability
    Earthquake
    Property Coverage
    Investment Group Funds Allocation
    Property management agreement
    Real estate taxes:
    Assess impact of sale on real estate taxes
    Review bonds/special assessments (if any)
    Review current and prior years' tax assessment notices
    Review real estate taxes
    Reconciliation of Purchase Price
    Review any permits or licenses required to operate property
    Review CC&R's, owners' association documents, by-laws
    Review appraisal
    ENTITLEMENT Status Comments Assigned
    Building permit
    City approvals with conditions
    Create chart and schedule of required permits
    Development agreement with City (if any)
    Final map
    Grading permit
    Land use report/ Zoning Review
    Off-site improvement agreement
    Prepare schedule of key dates

    2014 Copyright. All Rights Reserved. 4/12/2014 Page 1


    Due Diligence Check List Prior to Closing

    Project Name:
    Target Close Date:
    PHYSICAL & ENVIRONMENTAL Status Comments Assigned
    ADA, seismic, roof, strucutural, HVAC, elevator, sprinkler, plumbing
    Construction estimates
    Mold
    Obtain any third-party or other engineering reports
    Plans and specifications
    Review construction contract
    Review environmental (Phase 1)
    Review flood zone
    Review geotechnical reports
    Tenant improvement plans
    Verify # of parking spaces
    Verify ceiling height, floor slab, #/type of loading docks, etc.

    PROJECT SPONSOR Status Comments Assigned


    Accounting system review
    Background Check
    Financial Info: bal sheet, contingent liabilities/guarantees
    Litigation Review/ Disclosure
    Organizational chart
    References
    Resume
    Tax returns
    MARKET Status Comments Assigned
    Analyze building and land sale comps
    Analyze potential competition- planned/ entitled projects
    Obtain general background information on the market
    Perform demographic analysis
    Perform study of competition and market rent comparables
    Tour competing properties/ Potential competition
    PRE-SALES, TENANCY AND LEASES Status Comments Assigned
    Compare leases to seller rent roll/ financial projections
    Examine tenant options- termination, renewal, rights of first refusal, expansion
    Financial statements of tenants
    Obtain all sales contracts for pre-sales
    Obtain insurance certificates for all tenants
    Review all leases
    Review all tenant correspondence and files
    Review standard lease form
    PRE-CLOSING Status Comments Assigned
    Final versions of 3rd party reports
    Review final purchase and sale agreement
    Review settlement statements
    Proper allocation of closing costs
    Return of deposit (plus interest)
    Verify real estate taxes, tax period
    DEBT Status Comments Assigned
    Acquisition loan (Senior Loan Documents)
    Assignment and Assumption Agreement
    Assignment of contracts and subcontracts
    Assignment of rents
    Borrower's formation and authority documents
    Borrower's opinion letter
    Borrower's personal guarantee
    Completion guaranty
    Deed of Trust
    Guaranty: non-recourse exceptions
    Promissory note
    POST-CLOSING Status Comments Assigned
    Finalize funds adjustments
    Pay all due diligence / closing bills
    Receipt of first Activity Report
    Verfiy insurance confirmation

    2014 Copyright. All Rights Reserved. 4/12/2014 Page 2


    Due Diligence Check List Prior to Closing

    Project Name:
    Target Close Date:

    Name E-mail Phone Company Initials

    2014 Copyright. All Rights Reserved. 4/12/2014 Page 3

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