DUE DILIGENCE
This is a term that has already come up a number of times throughout this book. While doing “due diligence” on the property and the area around it is important, it is actually an official term. Officially, it means the time period for the buyer’s review of a commercial real estate space before the deal is signed and finalized. The time period is usually specified on the sale agreement. It can include a number of things depending on the situation, such as a building condition assessment, title search, lender survey, environmental assessment, getting other records such as taxes and utilities, or getting a history of the property’s repairs. Due diligence is one of the more important periods in the process. This is the last chance you have to investigate any aspect of the property before it is yours. After this, there is no going back.
ENVIRONMENTAL SITE ASSESSMENT
This is an inspection that will usually take place during due diligence. For industrial plants and manufactures it is very important, office spaces, not as much. The assessment will look at the property to make sure there are no containments, hazardous materials around it, and clean-up needs, and it will also check the indoor air quality. This is just one of many inspections that need to take place during the due diligence period. Using a neutral party here is also recommended (only if you are an industrial or manufacturing company). For any surveys that
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