Doing your due diligence before purchasing a property means you have completely evaluated and understood the risks of buying the intended property. You should have a clear understanding of the true value of the property, as it will likely be the biggest asset you will own. It’s recommended you build a due diligence clause into your offer to give yourself time to investigate the property, both in person and electronically (compliance paper work).
The below are some of the most reviewed by home buyers, when doing due diligence.
This is when you do a walk-through of the house and investigate fixtures and fittings, lighting and doors. Check out anything you can think of that will be used or need to be maintained.
Arguably one of the most important steps in obtaining information about your property is checking the title. Your lawyer should complete a title search; however, it is wise to request this from them as to account for any issues that might be harder to spot. Issues surrounding missing easements, access rights and drainage issues could be found.
Testing for the presence of methamphetamine prior to purchasing a property could save you from the stress and cost that would be involved in fixing contamination issues (which sometimes is not covered by your home insurance).
Much like the home inspection but a more in-depth look into the value of the property. Appraisals and valuations will give you the additional insight required to be able to know exactly how much your property is worth.
A LIM report (Land Information Memorandum) is a report that is completed by the local council. It will provide you with an informative summary about your house and the land it is on, including:
A building report will advise on any defect, problems and is a written report on the condition of the property. This report is particularly important if there have been structural renovations done on the property.
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