Other due diligence that you might do in a commercial transaction are physical inspections of the property. Of course you do that in residential transactions as well. But in a commercial deal you may do even more detailed and thorough physical inspections. You may need to get soils and geo-technical surveys. We review those reports and we have environmental experts. It’s something I’ve had some involvement in in the past, and it’s something we’re happy to do, is to get really involved in the review of the physical inspection reports.
But that is something that some people either handle in-house or even if they’re not an expert, they figure that they can read the report and make decisions. That’s fine but I say, “Do that and be aware of your contractual timeframes and contractual rights.”
Sometimes what we’ll do for someone who is a little uneasy about their physical inspection reports, is we’ll get certain representations and warranties from the seller that will give our buyer a little more comfort.
On the flipside of that, if I’m representing the seller, I typically am wanting to just have an as-is, where-is, with-all-faults contract. And say, “Hey, it’s up to you guys to do your due diligence. If you’re not comfortable with the reports, dig a little deeper, you know, or hire someone to give you some really more detailed and thorough advice on this specific issue.”