Importance of Property Due Diligence

The proper definition of Property Due Diligence is investigating about a property before signing the agreement or contract with certain standard of codes. The property due diligence is very necessary check for those who are buying, selling or lending the property. Property due diligence will play a major role in the transactions such as securing the title insurance policy which deals with the ownership of the property.

While performing the property due diligence first we have to find the respective parcel of land which doesn’t have the impact on the potential yield. Then you should also discard your land if it cannot be served by the public water and sewer. So while doing property inspection, you have to find the immediate remedy for the problem with the help of the engineer. On the other hand we should also check the geological conditions of the site which is in favor of the land disposal of sewage systems should also be inspected properly.  While doing property inspection its physical properties have to be taken into consideration which is very important as topography, structure of the site, road frontage. The property inspection should also possess if there is any wetlands or flood plains in or around the site.

The main part of the inspection is we have to check the site has any pre acquisition or any land problems must be clarified before proceeding further. Soil surveys play a vital role in the property inspection in which some characteristics will be taken into account such as geography of the land, soil maps and the characteristics of the soil and the aerial photographs of the site. While buying a property kindly keep note of the following points

  • Analyze the locality
  • Type of business or tenants
  • Set a terms and conditions before buying or selling the property
  • Be clear with your requirements
  • Is the zoning okay?
  • Construction of home is permitted?  What parameters would apply?  What will be the permitted height?
  • Is it economically feasible?
  • Will it be profitable?

Before getting into the agreement ask the seller for property inspections and perform the land survey and determine the utilities of the site as it may have a big impact on your development cost. So the property inspections or property due diligence is performed for our safety. You can get a clear picture about the property which will be useful for the buyers so that they can plan accordingly.

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