DEVELOPMENT DUE DILIGENCE CHECKLIST

Transcription

1 DEVELOPMENT DUE DILIGENCE CHECKLIST A. Title Condition. 1. Preliminary Title Reports. A current preliminary title report ( PTR ) for the Real Property. 2. Copies of Exceptions to Title. Copies of all documents shown as exceptions in the PTR. 3. Survey. Copies of all surveys of the Real Property. 4. Title Insurance. Copies of all title insurance policies for the Real Property, including all endorsements thereto. 5. Monetary Encumbrances. Copies of all documents and agreements evidencing current indebtedness affecting the Real Property, whether secured or unsecured, including loan and credit arrangements, promissory notes, deeds of trust, guarantees, financing statements and other financing documents affecting the Real Property. 6. Real Estate Taxes. Copies of the current real estate tax bills and tax assessments for the prior two (2) fiscal years for the Real Property.

2 7. Proposed Assessments. Information concerning any proposed or intended governmental assessment against the Real Property. 8. Water Rights. All water rights information and water rights documentation. B. Government Entitlements. 1. Zoning Information. Copies of all information concerning the current zoning of the Real Property, including a copy of applicable zoning ordinance and regional zoning map. [Confirm Real Property is zoned to be used for the construction, development, operation and maintenance of a golf course and country club facility.] 2. General and Specific Plan Designation. Copies of all information concerning the current general and specific plan designations of the Real Property and the consistency of current zoning with said general and specific plan designations. [Municipal Resolution Approving Specific Plan.] 3. Permits. Copies of all applications and related materials for any conditional use permits, zoning changes, storm water permits, discharge permits, variances or other special permits or approvals with respect to the Real Property. [Municipal Resolution Approving Environment Impact Report.] 4. Public Services and Utilities. Copies of all information concerning the availability or non-availability of public 2

3 services to the Real Property, including water, sewer and other utilities and infrastructure necessary for development and operation. a) Check capacity for each 5. Subdivision Compliance. Copies of all information concerning the compliance of the Real Property with the applicable subdivision laws including copies of all recorded tract maps. [Municipal Resolution Approving Tract Map.] 6. Agreements with Governmental Agencies. Copies of all written agreements with or in favor of governmental agencies which affect the Real Property. 7. Soils and Geological Reports. Copies of all soils and geological tests and reports relating to the Real Property. 8. Proposed Public Improvements. Copies of all information concerning any public plans or proposals for any road improvements, changes in access or other municipal improvements which would affect the Real Property or result in any assessments being imposed thereon. 9. Condemnation and Eminent Domain. Copies of all information concerning any pending or proposed condemnation proceedings, eminent domain proceedings or similar actions or proceedings pending or threatened against the Real Property. 10. Notices From Governmental Agencies. Copies of (and all available information pertaining to) all notices of 3

4 violation from any governmental authority of any applicable statutes, laws, ordinances, rules, regulations, or of any covenant, condition or restriction or easement affecting the Real Property. 11. Grading Permits and Building Permits. Copies of all grading permits and building permits and other licenses or permits for the construction of any improvements on the Real Property. 12. Flood Control Zone. Copies of all information concerning whether the Real Property is located within a flood plain or flood control zone as defined by any local, state or federal agency. 13. Pending or Proposed Actions. Copies of all written or oral information concerning any pending or proposed application, action or proceeding with respect to any governmental agency concerning any of the items described in this Paragraph B. 14. Wetlands. Copies of all information concerning whether any or all of the Real Property contains any wetlands as defined by any local, state or federal agency. 15. Reclamation of Bonds. Copies of all reclamation bonds with respect to the Real Property. 16. Temporary Easements. Copies of all temporary easements granting access to the Real Property. C. Environmental Reports and Filings. 4

5 1. Permits Obtained. Copies of all current permits under the Clean Air Act, Clean Water Act, Resources Conservation and Recovery Act ( RCRA ), and other similar federal, state and local laws (collectively Environmental Laws ), if any. 2. Hazardous Waste Information. Copies of all studies, reports or other information, whether or not in written form, concerning the existence or absence, on, under or within the Real Property, of (a) any hazardous wastes as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time, and regulations promulgated thereunder; (b) any hazardous substances as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, and regulations promulgated thereunder; and (c) any substance the presence of which is prohibited on the Real Property by any law similar to those set forth in this paragraph. 3. CEQA (or state equivalent) and NEPA Compliance. Copies of all information with respect to any pending or proposed proceedings in accordance with the California Environmental Quality Act or the National Environmental Protection Act affecting the Real Property. 4. Permit Not Obtained. A list of environmental permits and approvals that are required but either have not been obtained or have expired. 5. Permits. A list of all wetlands and other environmental permits and approvals 5

6 currently used for the Property. State Department of Fish and Game Permits Army Corp Permit CERCLA Notifications. Copies of all notifications filed pursuant to Section 103(c) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ( CERCLA ). 7. CERCLA Notice Letter. Copies of all PRP notice letters issued under CERCLA, if any. 8. RCRA Notifications. Copies of all RCRA #3010 notifications filed. 9. Administrative Complaints. Copies of all pending administrative complaints. 10. Inspection Reports. Copies of all environmental agency inspection reports for the prior five (5) years. 11. Pollutant Discharge Reports. Copies of all air and water pollutant discharge monitoring reports for the prior five (5) years. 12. Environmental Audits. Copies of all environmental audit reports. 13. Storage Tanks. Copies of all underground storage tank notifications. 14. RCRA Reports. Copies of all 6

7 RCRA annual reports for the prior five (5) years. 15. Hazardous Substance Spills. Copies of all documents relating to hazardous substance spills, if any, including notifications to regulatory agencies under CERCLA or otherwise. 16. Off-Site Facilities. A current list of all off-site waste disposal facilities to be used. 17. Annual Reports. Copies of all annual reports, if any, under the Toxic Substances Control Act. 18. SARA Reports. Copies of all analyses or reports required to be compiled or submitted under Title III of the Superfund Amendments and Reauthorization Act of 1986 ( SARA ). 19. Environmental Liability Reports. Copies of all reports for the prior five (5) years concerning environmental liabilities prepared for counsel in order to draft disclosure language in any financial statements prepared in connection with the business. 20. Phase I and Environmental Impact Reports. Copies of all Phase I and Environmental Impact Reports. 21. Slopes. Copies of all documents relating to the location, grades and soil stability of all slopes. 22 Lakes. Copies of all documents 7

8 relating to the location, depth, easements and drainage rights with respect to any current or proposed lakes on the Real Property. 23. Landscaping. Copies of all documents relating to the proposed landscaping of the Real Property. 24. Soils and Geological Reports. Copies of all soils and geological tests and reports relating to the Real Property. D. Hydrology. 1. Hydrology Studies. Copies of all documents relating to hydrology studies on the Real Property. 2. Effluent Issues. Copies of all documents relating to effluent issues on the Real Property. 3. Well Water Investigation. Copies of all documents relating to the availability of well water and irrigation water on the Real Property. 4. Termite Inspection E. Surrounding Real Estate Development. (if applicable) 1. Master Plan. Copies of the original Master Plan (or Specific Plan, as the case may be) and all revisions thereto and copies of all recorded tract maps referencing or showing the Real Property. 2. Association Documents. Copies of all past and current Declarations of 8

9 Covenants, Conditions and Restrictions, Articles of Incorporation, Bylaws and Rules and Regulations of the Homeowners Association and minutes of Homeowners Association meetings since its inception. 3. Residents. The following information about the residents of the community: (a) (b) Total number of lots owned by the master developer, both completed and undeveloped. Total number of lots owned by individual purchasers. 4. Sales Contracts. Copies of all purchase and sale agreements, escrow instructions and other documents (including deeds), and amendments thereto, between the Club and merchant builders or developers relating to the Real Property. 5. Advertising and Promotional Materials. Copies of all written advertising materials, sales brochures, maps and drawings used in connection with sales of the surrounding development. 6. Sales Materials. Copies of all standard form DRE approved purchase and sale agreements and escrow instructions between developer and lot purchasers, including written representations of merchant builders and/or their sales agents regarding access to and availability of the Club to lot purchasers. 9

10 7. Public Reports. Copies of all public reports issued by the DRE in connection with the development. F. Miscellaneous. 1. Rights of Third Parties. Copies of all outstanding agreements of sales, options, rights of first refusal or other rights of third parties to acquire any interest in the Real Property. 2. Litigation. All detailed information concerning any litigation proceedings or disputes, whether civil, criminal or administrative, pending or threatened against the Real Property or which affect, in any way, the Real Property. Such information should include copies of all material documents relating to such litigation in proceedings including pleadings and settlement agreements. 3. Litigation With Property Owners. All detailed information concerning any past or current litigation proceedings or disputes with owners of the surrounding property. G. Corporate Governance 1. Articles of Incorporation or Organization of Seller & Companies being purchased. 2. Bylaws of the above 3. Certificates of Existence 4. List of Officers and Directors 10

11 H. Other Items Maps of Gas wells and gas lines 11