Legality

You are agreeing to comply with applicable laws and regulations when you enter into a lease. The idea may seem obvious, but some local laws or regulations can take you by surprise. For example, if you plan to operate a pub or bar, you need to find out if the area has any regulations or noise restrictions which might affect your business.

On top of that, you also have to be sure that the building or property is legal and not violating any codes or regulations like zoning or environmental restrictions. Our lawyers and engineers are well versed with the federal and local laws of each state and can help you determine the legality of your project.

We will also scrutinize the proposed lease and help you understand every clause in detail. You can also get consultation on various acts like the Retail Leases Act which allows extra protection to tenants for specific circumstances.

Title Search

It’s really important to conduct a title search and determine the transferable right to the property. We will ensure that the seller has the title to the property and owns the right to transfer it. The seller may have absolute ownership, right of perpetual lease or tenancy rights. The nature of rights will decide your own rights and what can be transferred.

We will inspect the Preliminary Title Report (PTR) for details on land, title owner, claims and anything you need to know. The title search enables you to invest with confidence by discovering any marks on the title. Our lawyers will also check a title for any claims or liens and notify you in advance.

Encumbrances Over Property

We will verify whether the property in question has any encumbrances, mortgages or charges levied upon it. The presence of encumbrances can have a significant financial impact on you and your business and you have the right to full details on the subject.

Our lawyers will check up with the authorities and seller to determine if your property has any claims against it. The review of the title will also help us determine the presence of any encumbrances.

Property Inspection

You will obviously want to assess the condition of your property before you sign the agreement. We can conduct a site survey to clarify the lot size, boundaries of the lot and topographical details. The survey will also help us to identify any restrictions, easements or setbacks concerning the property.

We will also conduct a thorough inspection of the building and related components to find out any deficiencies, risks or red flags you need to be aware of. Our team can also undertake a complete Property Condition Assessment (PCA) to determine the health of your property and the necessary capital and repair expenditures you may need to make.

Our inspectors will perform a walk-through survey of every unit and cover all components including wall assemblies, building envelope, electrical systems, HVAC, roofing, flooring, life safety systems, structural frames, plumbing and more. We leave no stones unturned so that you can effectively identify all areas or repairs, maintenance or replacement along with estimated costs for proper budgeting.

The assessment will also help you determine the short and long-term capital expenditures so that you can decide whether the project will be profitable for you. We will also help you discover any code violations so that you can take corrective measures on time to avoid penalties or legal hassles.

Environmental Assessment

You should know if there are any environmental concerns related to the property in question. According to the laws, you will be responsible for any contamination or threats on your property. That’s why it’s really important to carry out environmental assessments before signing the lease.

We can undertake a Phase I environmental site assessment (ESA) to identify all environmental concerns of the property. You will also get to know about the severity of each concern along with their implications. We will also provide recommendations for remedial actions or cleanup.

You must conduct an ESA to determine your environmental liabilities while applying for loans or finance.

Life and Safety

Life and safety checks are an integral part of the due diligence process. Timely life and safety checks can prevent arguments and anguish later on. Based on the terms of the lease, you might be responsible for making the property fire compliant.

We devote adequate time on fire detection, fire alarm and fire fighting systems ensuring they work as claimed. Our team will also check if you have an adequate number of fire equipment or sprinklers on the premises. We also check if there are required numbers of fire exits, clearances are present to ensure safety.

We will also check the necessary fire certificates and consult with the owner as necessary.

Lease Audit

Many clients buy income-generating properties which involve leases. The income from the leases determines how much you can earn and for how long. We carry out lease audits to verify details like lease dates, amounts, signage t help you understand your cash flow and liabilities.

The lease audit will take note of any temporary discounts or deals made as part of the terms like the use of parking. We will also dig out the pending tenant debt, late payments, or eviction notices. You will be able to get a clear picture of your potential revenue to guide your investment.

While this may sound simple, the job is often tenacious as a single apartment can come with 200 leases! Our team helps you save your effort and time by taking on the laborious task.

Financials

Generating an idea of your cash flow is only a part of the equation. You will also need to figure out your expenses and costs.  The building might have a contract with an internet provider, security agency or pest control company. We will review the contracts to determine you are getting the right prices and a good deal. Our due diligence will also review historical operations to give you a picture of your costs.

We will perform a financial audit to fact-check the numbers given by the landlord. Our team will review past financials like bank statements, rent rolls to determine the operating income and expenses.

We will also identify areas you can save money- maybe you can get a cheaper insurance policy, stop overpaying your staff or ensure tenants are paying their dues. Our information enables you to create a strategic budget maximizing your profit.

Market Survey

We can conduct a market survey to help you estimate how much you can earn in the future. Our team will study comparable properties in the sub-market on variables like occupancy type, rent, amenities and so on. The survey can help verify your underwriting assumptions of occupancy rates and rents. If you have planned any modification or renovation, we can help you gauge the premium you can charge over the normal rent.

Our due diligence can include other steps as per the requirements of a project. We adopt a client-centric approach and evolving process to accommodate your unique needs and preferences.