Module 13 — Due Diligence

Topic 13.1: The Professional Home Inspection: What to Look For

This is your single most important piece of due diligence. Hire a reputable inspector and attend the inspection if possible. Pay close attention to the "big ticket" items:

• Roof: What is its age and condition?
• HVAC System: Does it function properly? What is its age?
• Foundation: Are there any signs of settling or water intrusion?
• Electrical & Plumbing: Are the systems up to date and safe?
• Pests: Any evidence of termites or other wood-destroying insects?

Topic 13.2: Reviewing Leases and Financial Documents (If Occupied)

If the property is already tenanted, you must verify the seller's claims. Request a copy of the current lease to confirm the rent amount and term. Also, request an "estoppel certificate" signed by the tenant,