Document All Communication
You want to make sure that you have a good tracking program in place to keep track of all the requests for information, back-up receipts and documents and everything else you need to keep track of from the seller. The best way to do that is through email. That way you’ll have a paper trail to look back on to see what’s still owed to you by the seller.
Story: Once when I was purchasing a building, I asked the property manager where the cancelled checks for some tenant improvements that were made and some lien releases. She kept telling me that she’d get them over to me as soon as she located them. As we were nearing the end of the due diligence period I followed up again to see where the items were I was waiting for. When she told me she’d get back to me, I told her if I didn’t get them by the next morning we would be expecting a credit at the close of escrow for the amount in question. The next morning I received a call explaining that there was a dispute with the contractor and that they were trying to get it settled. They did just that before we closed escrow. Questions or comments? Don’t hesitate to contact my office with questions or for more information.
Leave a Comment