Real Estate Due Diligence Checklist

Use the Real Estate Due Diligence Checklist to facilitate comprehensive property evaluations through acquisition documents, zoning and lease matters, etc.

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Property Inspection
Real Estate Due Diligence Checklist

Internal Procedures And Reporting

Financials

Building

Acquisition Actions / Documents

Title/Survey/Zoning Matters

Tenant/Lease Matters

Financial Matters

Service Contracts

Litigation

Insurance

Physical Property Inspection And Review

Personal Property Inventory

Governmental Review

Closing And Miscellaneous Actions

Property Operations And Management

Financing Matters (If Applicable)

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Checklist by GoAudits.com – Please note that this checklist is intended as an example. We do not guarantee compliance with the laws applicable to your territory or industry. You should seek professional advice to determine how this checklist should be adapted to your workplace or jurisdiction.

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Real Estate Due Diligence Checklist

Use the Real Estate Due Diligence Checklist to facilitate comprehensive property evaluations through acquisition documents, zoning and lease matters, etc.

1. Is a property visit confirmed by an Asset Management and Management Committee member?

2. Are all client-specific acquisition requirements met?

3. Is a transition memo issued to Asset Management, Property Management, and Accounting (if applicable)?

1. Is the rent roll reviewed?

2. Are the leases including amendments, extensions, modifications, guarantees, and estoppels reviewed?

3. Are the lease abstracts reviewed?

4. Are the accounts receivable and delinquencies reviewed?

5. Are the reconciliations (if any) reviewed?

6. Is the balance sheet for the past three years reviewed?

7. Is the check register for the prior year and year-to-date reviewed?

8. Is the general ledger for the prior year and year-to-date completed?

9. Are the sales histories for tenants year-to-date, and the last three years' report checked?

10. Are the tax bills for the past three years reviewed?

11. Is the schedule of CapEx for the past three years and the current budget reviewed?

12. Is the recovery worksheet for CTI reviewed?

13. Is the current month's TI reviewed?

14. Is the schedule of tenants' security deposits reviewed?

15. Is the schedule of any outstanding TI and/or leasing commissions reviewed?

16. Are the utility records reviewed?

17. Are the current invoices for service contract providers and utilities reviewed?

18. Is the insurance quote reviewed?

19. Is a copy of the loss report from the insurance company for the last three years reviewed?

1. Are the site plans and building plans (including any warranties from subcontractors) reviewed?

2. Is the existing Phase I report reviewed?

3. Is the insurance quote reviewed?

4. Are the POA documents (if applicable) reviewed?

5. Are the easement agreements (if any) reviewed?

6. Are the building service contracts (including leasing and property management) reviewed?

7. Is the building maintenance log and CapEx reviewed?

8. Are the warranties reviewed?

9. Is the property management agreement reviewed?

10. Are the tenants contacted, and is a contact list created?

1. Is the Letter of Intent signed?

2. Is the Investment Committee presentation created and approved?

3. Are due diligence materials requested and obtained?

4. Is legal counsel selected?

5. Is UBIT/ERISA counsel selected?

6. Is the 1st draft of the Purchase Contract obtained and reviewed?

7. Is the 2nd draft of the Purchase Contract obtained and reviewed?

8. Is the 3rd draft of the Purchase Contract obtained and reviewed?

9. Is the 4th draft of the Purchase Contract obtained and reviewed?

10. Is the 5th draft of the Purchase Contract obtained and reviewed?

11. Is the Access Agreement obtained?

12. Is the Client Authorization Letter obtained?

13. Is the Portfolio Manager Authorization Letter obtained?

14. Is the fully executed Purchase Contract obtained and reviewed?

15. Is a copy of the fully executed Contract delivered into escrow?

16. Is the Buyer’s initial LC or cash deposit with the Escrow Holder arranged?

17. Is the investment of the Buyer’s initial cash deposit arranged?

18. Is the Independent Contract Consideration provided to the Seller?

19. Is the funding schedule prepared and forwarded to the portfolio manager/client?

20. Is the name of the acquiring (title-holding) entity obtained?

21. Are the required bank accounts set up?

22. Is the fully executed 1st Amendment to the Purchase Contract obtained?

23. Is the fully executed 2nd Amendment to the Purchase Contract obtained?

1. Is a title company selected?

2. Are the Seller’s title commitment and underlying documents received, reviewed, and forwarded to the title company?

3. Are the current title commitment and underlying documents ordered?

4. Are UCC and judgment line searches conducted?

5. Is the existing survey received and reviewed?

6. Is a new ALTA survey (or update) ordered?

7. Are subdivision and parcel maps obtained?

8. Are restrictive covenants, easements, and agreements reviewed?

9. Is local improvement district information gathered?

10. Are leases, entitlements, and other assets verified to be in the seller’s name, or are appropriate assignment documents obtained?

11. Are releases from current lienholders confirmed as available (if applicable)?

12. Is the title and survey objection letter delivered to the Seller (if applicable)?

1. Are issues regarding leases resolved?

2. Are Tenant Correspondence Files reviewed?

3. Are expense pass-throughs/CAM charges compared to Operating Statements?

4. Are cost pools reviewed for overcharges to tenants?

5. Are tenant sales reports received and reviewed?

6. Is the list of security deposits received and reviewed?

7. Is the aged receivables report received and reviewed?

8. Is tenant credit information and payment history reviewed?

9. Are leases reviewed for any contractual landlord obligations (e.g., construction, payments to the tenant)?

10. Is the square footage between Leases and Rent Roll compared?

11. Are Tenant Estoppel Certificates prepared?