The battery of 3rd party due diligence reports can be a lot to digest for many involved in CRE transactions
The battery of 3rd-party due diligence reports can be a lot to digest for many involved in commercial real estate transactions. The reports are a veritable alphabet soup: ESA, PCA, PML, ALTA… the acronyms go on and on! Especially for those new to reviewing these reports, it’s enough to cause a headache. We get a lot of questions such as:
- I know what the property use is now; why do I need a Phase I Environmental Site Assessment? Why should I worry what the property was 50 years ago?
- What happens if the Phase I ESA finds something at the property?
- What does a Property Condition Report cover that an appraisal does not? How does the information impact my deal?
- When do I need to think about seismic risk?
- What do I really need to look for in an ALTA Survey or Title Review?
- I know what the property is zoned as; why do I need a Zoning Report?
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