Before you make an offer on any property, there are some official documents that you should request. Never take the seller's word for anything. Make sure you get everything in writing. A Buyer's Agent can help you with this process. There are a number of key aspects of the property that you should request official documentations on such as:
Determine the legality of the units. The seller should provide documentation establishing the legality of all units, as well as their compliance with zoning laws and building codes.
Get copies of all licenses. Check with local and state government agencies, and get copies of all necessary permits from the current owner. Licenses might be necessary in order to rent out the property.
Ask for tax bills. Get copies of all tax bills and evidence that they've been paid.
Examine rental contracts and other tenant related documents. Never make an offer to purchase property until you have copies of all forms that completely document the rental terms of current tenants, as well as rents being charged.
Acquire all financial records. The current owner should give you financial records that document annual income and expenses for the preceding 12 to 18 months, so that you can properly estimate cash flow and operating loss or expense.
Obtain estoppel certificates. An estoppel certificate is a legal document sometimes required by lenders. Renters must sign it to verify major points of the rental contract that exists between the current owner and the tenant.
Requesting these official documents before you make an offer can be really helpful to you in the future.
