Report generated by an architect or engineer describing the current physical condition of the property and its major building systems, e.g., HVAC, parking lot, roof, etc. The report also determines an amount for calculating replacement reserves, if needed.
Capital raised from owners. In a commercial real estate case, a lender will also provide equity capital for a percentage of ownership.
1. A special account set up by the lender in which money is held to pay for taxes and insurance.
2. A third party who carries out the instructions of both the buyer and seller to handle the paperwork at the settlement.