AVAILABLE 24/7
212-213-8511

August 31, 2023

REAL ESTATE LAW:  Conducting Due Diligence When Buying a Property

REAL ESTATE LAW:  Conducting Due Diligence When Buying a Property

Buying a property is a significant investment, and conducting thorough due diligence is crucial to ensure a successful transaction. Whether you're a first-time homebuyer or a seasoned real estate investor, following a comprehensive due diligence process can help you make informed decisions and avoid potential pitfalls.

Financial Assessment: Evaluate your budget and financing options to determine your purchasing power.

Location Analysis: Research the neighborhood's amenities, crime rates, schools, and future development plans.

TitleSearch: Engage a qualified title company to ensure there are no liens, claims, or disputes on the property.  (many buyers like to do this even before they go to contract)

Property Inspection: Hire a certified inspector to identify potential structural, mechanical, or safety issues.

EnvironmentalAssessment: Investigate the property's environmental history and potential contamination risks.

Zoning and Land Use: Verify that the property complies with local zoning regulations and land use restrictions.

Legal Review: Consult a real estate attorney to review contracts, agreements, and legal documents.

Insurance Consideration: Explore insurance options for the property, including homeowner's insurance and flood insurance if applicable.

Market Analysis: Research recent comparable sales in the area to determine the property's market value.

Tax Evaluation: Understand property taxes, assessors' records, and any potential tax incentives or abatements.

Utility and Infrastructure Check: Verify the status and functionality of utilities, drainage systems, and public services.

Lease Review: If the property has tenants, review existing leases and rental agreements.

Financial Projections: Estimate ongoing expenses, potential rental income, and return on investment.

Due Diligence Contingencies: Include contingencies in the purchase contract to address any issues uncovered during the due diligence process.

Final Walkthrough: Conduct a final inspection before closing to ensure the property is in the agreed-upon condition.

John Pak, Esq. a Partner and Chair of Real Estate, Commercial Leasing, and Condo Offering at Pardalis & Nohavicka attorneys in NYC emphasizes that "Due diligence is your shield against unexpected surprises. By thoroughly researching the property and understanding its nuances, you're not just buying real estate – you're investing in your future."

Connect with us

Visit our FacebookVisit our InstagramVisit our TwitterVisit our LinkedInVisit our YouTube channel
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. 
The viewing of this website does not constitute an attorney-client relationship. Attorney Advertising: Prior results DO NOT guarantee similar results.

Copyright © 2023 Pardalis & Nohavicka LLP. All Rights Reserved. Website Designed & Developed by Ruxbo
magnifier linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram