It is often said that the smallest details usually create the biggest issues. This holds true in the field of commercial real estate due diligence reporting. Failure to communicate timely and accurate property information to the lender, report provider and other transaction parties can result in a delay in completion of the due diligence reports, the loan underwriting and ultimately the closing of the deal.
To avoid project delays it is critical to provide a clear description of the subject property. This description should include:
- The correct address or multiple addresses
- Number of parcels
- Number of buildings
- Square footages
- Dates of construction and renovation
- Notable facts about the property/improvements
- An ALTA survey
- Any previous reports
It is also helpful to have a clear and correct scope of work required by the lender or purchaser and complete contact information for the individuals who are knowledgeable about the property and can arrange site access.
Unfortunately, this information is frequently pulled together from old documents and online without verifying the accuracy. In far too many instances this has resulted in incorrect property inspections, omissions or lack of access to the site resulting in the aforementioned transaction delays. It is best to have correct and clear information at the time of ordering all your due diligence reports to save time and frustration throughout the transaction.