1. Single Family Home and Commercial Due Diligence

2. Due Diligence for Single Family Homes
Property and Neighborhood
Financial
Legal

3. Property and Neighborhood Due Diligence
Schools
Home Inspection

4. Home Inspection Condition of Property Major Repairs PCDA
Radon and Pests
Lead Paint

5. Home Inspection—Coops and Condos
Usually No Inspection
Ground Floor Units
Top Floor Units
Small Buildings
Common Areas

6. Financial Due Diligence—Fees and Charges
Legal Fees
Mortgage Fees
Title Insurance
Insurance and Tax Escrows

7. Financial Due Diligence—Taxes
Property Taxes
Mortgage Tax
Mansion Tax
Sponsor Transfer Taxes

8. Financial Due Diligence—Coops and Condos
Coop Maintenance
Condo Common Charges
Flip Tax
Tax Deductibility of Maintenance

9. Legal Due Diligence
Contract of Sale
Title Report
Coop Board Minutes

10. Contract of Sale Downpayment Mortgage Contingency
Offer and Acceptance
Downpayment
Mortgage Contingency
Time of the Essence vs. On or About

11. What Does Title Insurance “Insure”?
That Title is Vested in Named Insured
Should Be an Unbroken Chain of Title
Breaks in Title are Insured by Title Policy
Mistakes, Errors, Fraud
Monetary Claim on Policy, Not Restoration to
Possession

12. What Does Title Insurance “Insure”?
That Title is Free of Liens and Encumbrances
Encumbrances to the Title to the Property
Goal is to Transfer “Free and Clear”
Mortgages, Judgments, Other Liens
Mistakes, Errors, Fraud

13. What Does Title Insurance “Insure”?
That Insured Has Full Use and Access to Property
Surveys
Encroachments
Possible “Out of Possession”
Adverse Possession
Boundary Line Agreement

14. Schedule B Exceptions to Title Insurance
Most Important Part of the Title Report
Exceptions Must Be Cleared or Omitted
Purchaser Can Take Title “Subject To” Exceptions

15. The Title Company’s Role at Closing—Reviewing Documents to be Recorded
Review All Documents
Accuracy of Deed and Mortgage
Collect Payoff of Mortgages, Liens, Judgments
Collect all Taxes
Collect Title Fees and Premium