Residential Due Diligence Agreement

Real Estate Acquisitions & Partnerships, LLC (REAP) will need to have full access to all relevant materials to carry out its inquiries and investigations.

This contract also will serve as a confidentiality agreement between the parties involved.. This will ensure against the situation where the prospective purchaser decides against acquiring the target business, yet uses or discloses such secrets, to the detriment of the vendor’s business.

Real Estate Acquisitions & Partnerships, LLC will supply a full detailed Residential Due Diligence report, “the Publication”, to the undersigned with the following information:

1. Characteristics

a. Tenant lease expirations

b. Current and future rent roll projections

c. Tax, contractor or other open property liens

d. Court cases

2. Physical Investigation

a. Structural examination

b. Individual apartment conditions

c. Building components (boiler/HVAC/etc.)

d. Complete interior/exterior conditions

e. Violations (actual and potential)

f. Hazards (excluding hazardous waste and toxicity studies – optional)

g. Recommended remedies and approximate costs to cure

3. Financial Examination

a. Actual collected rent rolls – Vs. conveyed

b. Actual repair costs analysis

c. Fuel efficiency

4. Conclusion

a. Proposed budget for the next fiscal year (income/expense)

b. Estimated actual net profit

c. Capitalization rates, return rates

d. Risk analysis

~	Further Considerations

The information provided by Real Estate Acquisitions & Partnerships, LLC (REAP) is not intended to constitute legal advice. The information contained in the Publication is for guidance only and should not be relied upon without obtaining appropriate advice having regard to the client’s direct personal circumstances.

No responsibility for loss occasioned directly or indirectly to any person acting or refraining from acting wholly or partially upon or as a result of the material in the Publication or for any error in or omission from the Publication can be accepted by the publisher or any author, editor, contributor or consultant or any company referred to herein.

The Publication is made available on the understanding that neither the publisher nor any author, editor, contributor or consultant or Internet service provider or any company referred to herein is not engaged in rendering legal, accounting or other professional advice or services.

We make no warranties of any kind as to the accuracy of the content, or for errors or omissions. You assume the entire risk as to the accuracy and the use of these pages and the information herein.

The Publication is provided "as is" without warranty of any kind, either express or implied, including without limitation, as to the accuracy therein. You expressly waive any against Real Estate Acquisitions & Partnerships, LLC, including without limitation negligent misstatement or for economic loss and consequential damages.

~ The Costs of Due Diligence

Like many aspects of business, due diligence can be an expensive exercise. At the end of the day, it is a commercial decision to be made by a purchaser in respect of any transaction. Embarking on due diligence deliver benefits that outweigh the cost: otherwise there is no added value to the prospective purchaser in engaging in due diligence The cost/benefit rationale is based on the notion that the cost of review & renegotiation "now" is far less than sorting out post settlement "surprises" following completion of the transaction.

For a type “A” report containing the aforesaid services the cost is $5,000.00

For a type “B” report containing the aforesaid services, the cost is $7,800.00

The difference is that a type “B” report is more granular in the reporting and information provided. Type “A” reports are more commonly used in buildings or complexes with less than 50 apartments.

Environmental and Phase 1 / Phase 2 reports are also available if determined necessary for an additional cost. All quoted prices do not include expenses such as traveling, materials that may be used, waiting time or any field time in excess of eight (8) hours.

A $2,000.00 minimum nonrefundable deposit is required prior to the commencement of work and balance is due upon notification of delivery of the Publication. After filling in the proceeding form, you will be brought to our secure payment site. You will be contacted within 24-48 business hours to review and obtain preliminary information. Thank you.

By agreeing, you are entering into a binding contract with Real Estate Acquisitions & Partnerships, LLC

Further Considerations

~ The Costs of Due Diligence