How To: Perform Due Diligence When Buying Property | Featured on LIC Magazine

Our attorneys break down everything you need to know when going through the buying process.

A property inspection allows the buying to examine the physical aspects of the property – from heating and plumbing to the structural appearance and even grass.

A title search reveals any issues with the seller, the buyer and the property itself, including unpaid taxes, judgements, mortgages, special assessments and the legal owner of the property.

Buyers should be aware of current zoning regulations they will need to comply with; it’s crucial to check if their intended use of the property is legal under the zoning codes and regulations.

Sometimes, environmental inspections will include a Phase I Report, which can expose any contamination of a property by hazardous materials. If necessary, a Phase II can be set in place to attain more information.

A licensed surveyor can be hired to conduct a property survey that will inform the buyer on any encroachments on the property or the adjacent property. The survey can also inform the buyer of any easements.

The lending institution needs to conduct a property appraisal to verify that the property’s worth matches the price the buyer is paying. This does not happen until after you have a fully executed contract of sale.