Property Preservation Compliance Checklist: What Servicers and Vendors Need

Compliance is the backbone of professional property preservation. Servicers face regulatory scrutiny from CFPB, state regulators, and investor audits. Vendors face chargebacks, vendor scorecard impacts, and potential termination for non-compliance. This checklist covers the key compliance areas that both servicers and vendors should track across every property in their portfolio.

Initial Secure and Property Registration

• Complete initial secure within investor-required timeframe (typically 3-5 business days from referral)
• Register vacant property with municipality if required by local ordinance
• Post required notices per state and local law
• Install investor-specified lock types and document all lock codes
• Complete required initial photos: all four exterior elevations, street view, all interior rooms, all utilities, all damage

Ongoing Maintenance Compliance

• Maintain grass below investor-specified height (varies by investor, typically 6-8 inches max)
• Complete recurring inspections at investor-required intervals
• Winterize by investor deadline (typically November 1 in northern states, varies by region)
• De-winterize by investor deadline (typically April 1, varies by region)
• Remove all debris, personal property, and health hazards per investor timelines
• Maintain property in compliance with all local codes and ordinances

Documentation Standards

• All photos GPS-tagged and time-stamped
• Before and after photos for every work order item
• Photos capture the specific condition or work performed, not generic property views
• Completion reports submitted within investor-required timeframes
• Cost documentation includes itemized pricing matching approved allowable amounts
• Exception and over-allowable requests documented with photos and justification before work begins

Common Audit Findings

The most common compliance failures found during servicer and investor audits are documentation gaps — missing photos, late submissions, and incomplete completion reports. The second most common category is timeline failures — initial secures, winterization, or grass cuts completed outside the required window. Technology-driven documentation processes with automated quality checks dramatically reduce both categories of failure.