Investigating Your New Purchase. Once you make the commitment to purchase an existing property, you'll need to inspect every aspect of its condition including original design & engineering documents (if available), major building components (structural, mechanical, electrical, plumbing), title condition, operating history, existing service agreements, etc. We recommend you hire an unbiased commercial building inspector. This should cost between $5,000-$7,000, and will be worth the investment. Below is a checklist we use to assure that no details are missed.
- Compare Zoning to your proposed use (if not done previously).
- Confirm Utility services to property.
- Consider meeting with municipal Planning Department to review comprehensive plan and proposed changes to immediate area.
- Seller will order Title commitment for Buyer’s review (Broker and Attorney).
- Walk the site to Visually Inspect for deferred maintenance or hazards (hired inspector).
- Review Title Documents especially B-2 Exception documents (Broker and Attorney). Revise as necessary. Complete further investigation if necessary.
- Obtain and Review all Property Documents provided by Seller (Seller’s Property Disclosure Form, certificate of occupancy, government notices, permits, design & engineering plans, survey, phase 1, geotechnical studies, vendor service agreements, CC&R’s, operating statements, rent roll, current leases, ADA studies, etc.)
- If existing leases, then obtain signed Estoppel
- Obtain list of past Vendors that have serviced the property in the past.
- Order ALTA Survey certified to title insurer.
- Schedule Inspections of mechanical, electrical, plumbing, structural and roof. Inspection Service is the best unbiased source. Measure available capacity of cooling units and electrical service. Determine if subcontractor inspection(s) necessary.
- Schedule Fire Department to walk-thru for code related issues.
- If property is being financed, meet with lender to learn about closing requirements including loan commitment Terms, ordering Appraisal, required Repairs, etc.
- Order Phase 1 Environmental (or have updated by previous provider. Also include indoor hazardous materials).
- Consider ordering an ADA
- Contact Insurance company(ies) for quote(s) / to order property and casualty insurance, liability insurance, contents insurance.
- 2 weeks before closing: request from title company Deed, Promissory Note, etc.
- 1 Week before closing: review Settlement Statements from closing entity detailing proration of expenses.
- On Day of Closing: Perform Final Walk-thru to insure property delivered as promised.