PCA
See Property Condition Report.
Frequently Asked Questions about “Property Condition Assessment (PCA)”
What does PCA stand for in real estate?
PCA stands for Property Condition Assessment, which is also referred to as a Property Condition Report. It is an evaluation of a building’s physical condition conducted during due diligence.
What is the purpose of a Property Condition Assessment?
A PCA provides a detailed report on the physical state of a property, identifying current deficiencies and forecasting future capital expenditures. It is a key document in underwriting and acquisition decision-making.
Who typically orders a PCA?
Buyers, lenders, or equity investors typically order a PCA during the due diligence phase of a commercial real estate transaction to assess building integrity and estimate upcoming capital needs.
What types of issues are covered in a PCA?
A PCA evaluates structural components, HVAC, roofing, electrical, plumbing, fire protection systems, and ADA compliance. It also includes a breakdown of immediate repairs and long-term capital reserves.
Is a PCA required for financing a property?
Many lenders require a PCA, especially for loans involving commercial or multifamily properties, as part of the underwriting and risk assessment process.
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