See Property Condition Report.


Frequently Asked Questions about “Property Condition Assessment (PCA)”

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.

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.

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.

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.

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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