DUE DILIGENCE:

Once both parties sign the purchase contract, it is time to conduct a complete evaluation of the property. Such further evaluation will likely include property inspections for termites, dry rot, mold, asbestos, faulty structure/foundation, roof condition, heating and air conditioning systems etc. LAVP can help you find qualified professionals to do such investigations and provide you with written reports of their findings. You will review a preliminary title report, which will reveal ownership problems such as mechanics liens or tax liens against the property, rights of other parties on the property (i.e. an access easement for utilities) and use restrictions on the property imposed by a past owner or a governmental authority. LAVP will work with the seller’s broker, the title company and/or an attorney (if necessary) to help you resolve title issues that might cause problems at a later time.  Investors will review applicable tenant leases, property management contracts and maintenance contracts if any such agreements will survive the closing and request estoppel certificates to confirm that the provided agreements are accurate and that you will not inherit any problems under such agreements.