Hi y'all!

This is a first for me - never sold an apartment building before.

What are the key factors with a commercial transaction like this? what do I need to provide to the buyer to satisfy all disclosure laws, etc. What does the buyer need to provide to me so that I know they can close the deal? In other words, how does oe put together a deal involving the sale of an apartment building? thanks for your expert assistance

Are you familiar with pricing multi-family using CAP rates? Are you familiar with the due-dilligence required? Are you planning to do the due-dilligence, is the buyer doing that themselves, or are they hiring someone else. Buying and selling apartment complexes is a VERY involved process, and you won't be able to get all the info you need off of this board. If you've never sold large commercial income property or apartment complexes before I would suggest you hook up with a commercial broker in your area who specialized in apartments and offer them a split of your commission to walk you through the deal. I think you will find it a lot more involved than you expect. I don't agree with everything in the book, and I don't remember who wrote it- but check out "How to Buy and Sell Apartment Complexes." Ignore all of his suggestions, but pay close attention to how to calculate everything and how to perform due-dilligence. You have a HUGE amount of work ahead of you.

Different disclosure laws apply to residential property with more than 4 units. If 4 or less, then the disclosures are more stringent. (look to California Civil Code section 1102 et seq p. 63+ http://www.dre.ca.gov/relaw.htm )

In any event....

1) get copies of all leases
2) get the property owner to give you a schedule e - if they have one or least a spread sheet of the schedule of rents and operating costs
3) if the owner had enlisted the services of a property management company - get that file for at least three years.
4) (**u are not required to do this, but you do, you have to disclose any material problems you find) look to see if the building is currently in violation of relevant zoning ordinances
5) (**u are not required to do this, but you do, you have to disclose any material problems you find) look for liens
6) find out any material defects with the property.
7) any easements or encumbrances otherwise?
8) all items required in the TDS that the city or county may require.