Question 1

What is a Property Condition Assessment?

Accepted Answer

A Property Condition Assessment (PCA) is a systematic inspection of a commercial property's physical condition, typically conducted prior to acquisition or financing. It follows the ASTM E2018 standard and documents building systems, deferred maintenance, and capital expenditure needs. It is widely required by lenders as part of commercial loan underwriting.

Question 2

What is ASTM E2018?

Accepted Answer

ASTM E2018 is the standard guide for Property Condition Assessments of commercial real estate published by ASTM International. It defines the scope, methodology, and reporting requirements for a PCA and is widely accepted by commercial lenders, CMBS originators, and agency lenders as the benchmark for physical due diligence reports.

Question 3

Do lenders require property inspections?

Accepted Answer

Yes. Commercial lenders — including banks, CMBS originators, life insurance companies, and agency lenders — typically require a Property Condition Assessment before issuing a loan secured by commercial real estate. Construction lenders also require draw inspections throughout the build. Requirements vary by lender type and loan product.

Question 4

What is a construction draw review?

Accepted Answer

A construction draw review (also called a draw inspection or progress inspection) is a third-party site visit conducted during a construction or renovation project. The inspector verifies that work completed matches the draw request submitted by the borrower before the lender releases the next tranche of funds. TerraScope provides draw review services for lenders and investors nationwide.

Question 5

Does TerraScope Inspections provide residential pre-purchase inspections?

Accepted Answer

Yes. TerraScope Inspections provides thorough pre-purchase inspections for residential buyers across North Carolina and the United States. Whether you are purchasing a primary residence, vacation home, or single-family rental property, our detailed inspection reports give you the clarity you need before you close.