School Facility Due Diligence Checklist

Due diligence is the process of thoroughly investigating a property before you finalize a lease or purchase. For school founders, this phase is critical: environmental issues, code violations, or unclear title can derail your timeline and drain your budget. This checklist applies to all K-12 programs. Work through each category with your attorney, architect, and code consultant.

Environmental Assessment

Environmental review to identify contamination risks before finalizing.

• Phase I Environmental Site Assessment completed
• Phase II assessment completed (if Phase I identified concerns)
• Asbestos survey completed (for buildings built before 1980)
• Lead-based paint testing completed (for buildings built before 1978)
• Radon testing completed
• Mold inspection completed

Legal & Title

Legal review of the property and lease to protect your interests.

• Title search completed (no liens, encumbrances, or title defects)
• Lease reviewed by attorney experienced in commercial/educational leases
• All lease terms finalized (rent, escalation, TI, renewal options)
• Insurance requirements reviewed and quotes obtained
• Leasing entity formed (LLC, nonprofit, etc.) and in good standing
• Board of Directors approval obtained

Building Inspection & Code

Detailed inspection of building systems and code compliance.

• Professional building inspection completed
• Structural engineer assessment (if concerns identified)
• Final building code review with architect or code consultant
• Fire marshal pre-inspection or consultation completed
• ADA compliance assessment completed
• All required permits identified and application timeline set

Buildout & Timeline

Planning and scheduling the tenant improvement buildout.

• Architect engaged and schematic design started
• General contractor bids obtained (minimum 3)
• Final TI budget confirmed and funding secured
• Buildout timeline developed with contractor
• Permit review timeline confirmed with building department
• Opening date still achievable given buildout schedule

Financing & Move-In

Final financial confirmation before signing.

• Financing confirmed (loans, grants, fundraising)
• Security deposit and first/last month's rent funds available
• TI funding secured (landlord allowance + out-of-pocket)
• Year 1 operating budget finalized including facility costs
• Move-in plan and FF&E purchasing timeline set
• Key vendor contracts in place (janitorial, security, IT)

Key due diligence terms to know

Understanding these terms will help you navigate the due diligence process:

• Phase I Environmental Site Assessment (ESA): A review of property history and records to identify potential environmental contamination. Required by most lenders.
• Phase II ESA: If Phase I identifies concerns, Phase II involves soil, water, or air sampling to confirm and quantify environmental risks.
• ALTA Survey: A detailed boundary survey outlining property boundaries, easements, encroachments, rights-of-way, and other elements affecting ownership and use.
• Title search: A review of public records to confirm legal ownership of the property and identify liens, encumbrances, or restrictions.
• Geotechnical assessment (GeoTech): Evaluation of soil stability and suitability for construction.
• Flood zone determination: Determines if the property lies within a flood-prone area, which affects insurance requirements and construction feasibility.