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NEIGHBORHOOD DUE DILIGENCESchool System RatingsFor properties in area's you are not familiar with you should look up school ratings.Public TransportationFind out bus, light rail, train, and were other public transportation is located in proximity to the property. If the property is a rental you may have tenants who don't have vehicles.ParkingAlways be aware of the parking that is available especially in highly urban neighborhoods. Crime Statistics & Police StationsFor properties you are buying in area's you are not familiar you should review crime statistics and where local law enforcement offices are located.Fire StationsFind out if the area is a public or private organization that provides emergency firefighting and rescue mercial, Industrial, or Agricultural ActivitiesFind out the proximity to commercial, industrial, or agricultural activities in the area. Other Governmental ServicesFind out if there are any public services in the area (ADA Advisory Committee, Historic Resources, Task Forces, etc.)Construction and DevelopmentFind out about any existing and proposed construction and development in the area. The local planning and zoning office is a good place to start.PROPERTY DUE DILIGENCEDeadlines TrackedMake sure you update your calendar, Realeflow, or anything that you are using to track the deadlines involving the deposit, home inspection, financing contingency, date of closing and any other contingency dates you have.Home InspectionIf you are new to buying real estate it is always good advice to have a home inspection performed on any properties you are buying. As you gain experience you may decide to not have home inspections performed and you may end up doing the inspections yourself. A lot of the items below may be included in the inspection by the home inspector but not all. You should also have the house tested for radon and some inspectors will do this for free and others they will charge you a little bit more to perform the test. Some states you have to be licensed to do radon tests so not all home inspectors do radon tests.Utilize the "Inspection Checklist" for a 2nd walkthroughIf you are going to do your own property inspection then you will want to utilize the "Inspection Checklist" which is a very detailed system for evaluating all sections of a residential property that can be downloaded on the Mastery site. This is something you should always have printed and carry with you when you are estimating repairs on any property. Asbestos InspectionIf you find asbestos on the property you should have a contractor who specializes in asbestos abatement walk through and give you a quote.Lead Paint InspectionIf you find lead paint on the property you should have a contractor who specializes in lead paint abatement walk through and give you a quote.Mold InspectionIf you find mold in the property you should have a contractor who specializes in mold abatement walk through and give you a quote.Buried Oil Tank InspectionIf you have a buried oil tank you always want to have someone check the soil to make sure the tank is not leaking. Fire Damage InspectionIf you are purchasing a fire damage property you will want to have a contractor who specializes in fire damage properties walk through the property to give you a quote. The building department will generally want you to remove more of the framing then you often expect.Sewer Scope InspectionIf the property has been vacant for a long time you may want to have the sewer scope performed to check the sewer line from the house to the street. Septic Tank InspectionIf the property has a septic tank it is recommended that you have the septic tank inspected. If the property has a septic tank you may need to get a Title 5 report before closing.Well InspectionIf the property has a well it is recommended that you have the well inspected.Foundational/ Structural InspectionIf there are any foundational or structural problems you will definitely want to get a quote from a contractor who specializes in foundations or structural work before you close. Depending on the extent of the damage you may need to get an engineer or geological conditions inspection. In houses where you are worried about the foundation you may also want to pull up areas of the carpet.Geologic Condition InspectionConsult with appropriate professionals regarding geologic conditions at or near the property (soil and terrain stability, drainage problems, building and/or zoning requirements, etc.).Soil InspectionIf you are concerned with the soil quality on the property you are buying you should have it inspected. Roof InspectionIf you are not sure if the roof needs work or should be replaced you should have a roofer come examine the roof before you close.Pool InspectionIf the pool is not working or drained you should have a pool contractor come look at the pool before you close. Historical Home InspectionIf the home you are purchasing is historical you will have restrictions when it comes to remodeling and or building. Permit Check InspectionIf the seller has done any work to the property while living there you should always confirm that the work was permitted properly. Especially, if extra square footage was added to the property. There are various ways to check if the work was permitted depending on where the property is located, but the best way to check in most municipalities is with the building department. Noise and OdorFind out if there is any loud and excessive noise or offensive odors in the area (cow lots, horse pens, music festivals, commercial noise, etc.). Utility Services: Water/Sewer/TrashFind out dollar amount owed, note the date you called, and contact information for the utilities. TaxesFind out dollar amount owed, note the date you called, and contact information for the city/state. DOCUMENT DUE DILIGENCE AFTER CONTRACTPurchase and Sale Agreement & AddendumsMake sure you have a fully executed purchase and sale agreement and that you track all the deadlines within the contract. Also, make sure everyone has a copy of the agreement involved in the transaction. If there are any addendums to the purchase and sale agreement make sure they are give to the appropriate parties as well.Property DisclosuresMake sure the seller signs all the appropriate property disclosures and that you review those disclosures.Copy of Earnest Money Deposit (EMD) Check This check should reflect the deposit amount.Proof of FundsIf a proof of funds is required make sure it is sent to the appropriate parties. Confirm ReceiptConfirm that you have received all the necessary documents and put all paperwork in property folderArticles of OrganizationIf escrow or any lending institution needs the articles of organization for your corporation or LLC taking title make sure they get sent. Trust or LLC DocsIf the seller owns the property in a Trust or a LLC make sure you have them send to you and escrow proof of who the authorized signer is. Get Documents signedList of documents expected to sign SurveyIn some states it is common practice to have a survey ordered when you buy and sell property. In other states it is not common practice. Surveys will help you dictate issues with boundary lines, right-of-ways, easements, joint driveways, encroachments, existing improvements, water, electric, gas, and telephone locations. Finally, a survey will report your zoning jurisdiction and classification.Covenants, Conditions & Restrictions (CC&R's) If you buy a home in a planned, covenanted community, you will most likely be required to be part of a homeowners association (HOA). The rules of the HOA are set forth in the (CC&R's) and you will definitely want to review them. You will also want to know the monthly dues and assessments to the HOA.Home Owners Association (HOA) or Condo DocsAlways review the HOA or Condo Docs when you buy a condo or property in a homeowners association. A few things to look for are special assessments, budget and reserve funds, lawsuits or judgments, current violations by the seller, by-laws you are required to follow, special unit or building issues, restrictions on short-term rentals or pets, insurance issues, building construction quality, etc. HOA/Condo Doc ChecklistDownload the "HOA/Condo Doc Checklist" from the Mastery site. This doc contains a list of questions you want to find out the answer too when buying condos or townhouses.Multi-Family Tenant RiderIf you are buying a multi-family property you will want to review the multi-family tenant rider, which has information about the tenants, rents, leases, and security deposits.Authorization to Release Get an "Authorization to Release Information Sheet" signed by all mortgage holders and for all mortgages.Review Mortgage Note - Subject To PurchasesIf you are buying the property subject to the existing mortgage make sure you review all of the terms of the mortgage and the mortgage note.Mortgage Payoff - Subject To PurchasesIf you are buying a property subject to the existing mortgage always order a payoff from the lender to make sure there isn't a prepayment penalty. Mortgage Amount to Bring Current - Subject To PurchasesIf you are buying a property subject to the existing mortgage always and the seller is behind on payments you will want to bring the mortgage current at closing so you will need to get the amount to bring current from the lender. Short Sale Acceptance Letter - Review for Deed RestrictionReview the short sale acceptance letter from the bank to see if there are any deed restrictions you should be aware of. ................
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