Buying an investment property is undoubtedly one of the largest investments one can make. Thus, it is imperative that a buyer do his/her due diligence at the beginning of the transaction and usually before signing contracts. Due diligence, regardless of the type of property, is the investigation of the quality, both physical and intangible aspects of the property being conveyed.
Here is a checklist to assist buyers with the due diligence process. Please note this list is not exhaustive:
1. Take a trip to the local municipality’s building department and search for and obtain copies of:
- Certificate(s) of Occupancy (“CO”)
- Certificate(s) of Completion (“CC”)
- Open Permits
If obtaining financing a lender will usually require the proper certificates, that open permits are properly closed out, and a survey of the premises be updated.
2. Obtain from the Seller and/or his agent the following:
- Leases with any and all renewals and/or modifications (E...