Inspections & Appraisals

The process

• Initial agreement and deposit. Keep written records of all agreements, counter‑offers, and addendums. Adhere to the agreed schedule to meet contract timelines.
• The closing agent. A title company or attorney will act as close escrow agent, holding and disbursing funds and verifying the title is clear before closing. All contingencies in the purchase agreement must be satisfied before escrow closes.

How to hold title

There are several title‑holding options, each with different implications for transfer, financing, and taxation. Consult an attorney or tax advisor to select the best structure for your situation. We can connect you with trusted professionals in the area.

Inspections

Schedule a licensed property inspector within the agreed contingency period. Inspectors identify property conditions and any issues. You may also hire specialists (roof, plumbing, HVAC) as needed. For commercial purchases, additional audits (UCC searches, environmental, soil) may be required. If inspections reveal problems, you can request renegotiation or repairs. Once satisfied, contingencies are removed.

Appraisals and lending

Stay in close contact with your lender to provide documents on time. If financing is a condition, the lender will order a third‑party appraisal to confirm the property’s value. Appraisers evaluate factors like replacement cost, square footage, and income potential. Verify loan approval two weeks before closing.

Association approval

If the property requires association approval, request all rules and forms from the seller and meet the submission timeline in the purchase agreement. The approval letter will be recorded with the deed at closing.

Property insurance

Most lenders require property insurance. Purchase homeowners insurance if you’ll occupy the home or landlord insurance if you plan to rent it out. Insurance protects against fire, theft, and certain weather events

Leases and Occupancy

If the property is currently leased or has tenants, carefully review all leases, rental agreements, and related documents during your due diligence. Understand the lease terms, rent rolls, and tenant obligations, as these transfer with the property at closing. For commercial purchases, verify compliance with local tenant laws and consider potential impacts on your investment strategy.