Things you'll need: (*Recommended)

• Compile any necessary investor data. Create due diligence records with annual income, expenses, utilities and other helpful information you can share quickly with potential buyers to help us assess the potential of the property for purchase.

• Have or prepare a T12  and Rent Roll for at least the last 12 months of operations for the property. Both physical and economic vacancy data should be included with proof of rent payments eventually needed (deposit records) to show tenants are actually paying rents. The T12 statement comprises all monthly expenses and revenues of  your property for the past year. A T12 refers to data that shows the economic performance of income producing real estate; showing it's Goss Income, Expenses and Net Operating Income over the past twelve months.

• Have a clear title to the property.
  When you sell any real property, you have to be able to convey or pass on clear title to it. Clear title means uncontested, unambiguous ownership of the property. A title company can help you with this. Note if there are any encroachments or encumbrances on the property or clouding on the title that have to be removed before closing.
  Be aware of all aspects of your property’s physical condition: 

1. Are all mechanical systems operating properly?

2. Is the plumbing in good working order?

3. Is the electrical service up to code?

4. Are there any unapproved or objectionable construction materials such as asbestos or lead pipes?

5. The property will have to be in good working order prior to closing.

6. In some municipalities, properties will have to meet current building codes when they change ownership. This might require updating the building(s). Even if that is not the case, your buyer or their lender may require that you update the building to meet existing codes.

7. You will be required to provide the buyer with what is known as “diligence documents”. This will include all reports and tests done on the property such as:

• surveys, appraisals, inspections,

• construction and repair contracts and plans,

• environmental tests such as Phase I or water tests,

• Property Insurance policies

• title insurance policies.

• Any concerns noted or exclusions from coverage will have to be addressed before closing.
  Review the Tenancy Contracts: 

1. Thoroughly review all leases and related documents such as amendments or extensions. This includes electronic or written communications with tenants regarding late payments, defaults, tenant compliance issues, maintenance requests, or disputes.

2. Rent rolls should be up-to-date and accurate. Trust account records, if any, should be reconciled and reviewed to ensure compliance with state law as required. Tenant deposits have to be accounted for.

3. All of this information will be part of the buyer’s diligence documentation that you have to provide.

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