- October 31, 2017
- Posted by: admin
- Category: Latest News
Once you have signed a contract for sale to buy land, you have few remedies if it turns out to be not what was expected. Even in situations where you may have the remedies, enforcing them will be a costly process that will eat on your money. Unfortunately, it will be more than what would have been spent making the necessary investigations before buying the property. Once you have decided that the property meets your needs in terms of location, size, budget and facilities, proceed to due diligence.
Due diligence is a process of gathering relevant details about the property. The information will mostly be available in the council searches or from the people who have some knowledge about the property. In the search, you will get information that relates to the property. The details include the:
- If the site is contaminated meaning any outstanding issues that may affect the property,
- Certificate of the Title also needs to be checked, it contains information on the owner, details whether a mortgage is registered on the property, easement of services and utilities among others. Checking the title of the property helps establish the original land survey and ensure that the boundaries and dimensions are correct.
- Get a copy of where the water lines and sewer line run; this can be availed from the water corporation. Since you may decide to develop or extend on the property, this becomes even more important.
- Soil Quality to be tested.
Planning and zoning are two important factors that are likely to affect your property. When conducting the due diligence process, you will need to verify zoning of your property. This is information that can be obtained at the local council offices. The councils normally have the required guidelines summarizing the main points which need to be considered in the subdivision of the property.
Market research also need to be part of the due diligence process. Gather information on the sales in the area. Find out how the market is currently performing. Analyze the performance of similar development and compare it with your proposed development in the site. Looking at the comparable rates, you will be in a position to know whether your project will be viable or not. Carrying out a comprehensive feasibility study of the area you intend to subdivide will help in identifying the risks and opportunities before you embark on the process.
Due diligence is an important component when buying a property with an aim to develop. It helps establish whether there are issues. It is a decision making tool that can save your hefty costs and heartbreak too. Emphasis should be placed on titles and zoning details as they carry the weight on the matter development.
TAQWA will help you in every step of the way; we will assist in conducting a due diligence and ensure that the property is good for subdivision and development of your project.