Due Diligence for Residential Real Estate Purchases

As a buyer of real estate, you are responsible for conducting due diligence on any prospective property you are purchasing. Failing to thoroughly review property-related documents for any potential liabilities could result in costly financial or even legal consequences. That is why Jurado & Farshchian, P.L. offers personalized and comprehensive guidance to real estate purchasers performing due diligence on their potential acquisitions. Here are just a few of the factors we can advise you on.

Development/Construction HistoryFor new construction properties, one of the first things you should have access to are the original construction documents of the property, such as the design layouts and any sub-contracted work. This will give you a better understanding of the core characteristics of the property, as well as help you spot anything that looks amiss.

Moreover, you should investigate the reputation and track record of the developers, contractors, and sub-contractors involved in the construction. This is especially important for properties in which developers served as their own general contractors, since there is a greater chance that the quality of the construction was compromised to meet a faster and more profitable deadline.

SurveyAnother important item that you will need for freestanding properties is a property survey. Through this survey, you will be able to determine if there are any encroachments on the property (such as a neighboring fence) and you will also be able to confirm the boundary lines for the property. The survey will also provide a handful of other useful information, such as easements, ingress and egress, the property’s legal description and existing improvements.

Title SearchMaking sure your prospective property has no outstanding title issues is critical. A title search can uncover many things that could potentially cost you a lot of money down the road to fix. A title search is used to determine the legal description of the property, the current owner’s name, all encumbrances, liens, judgements, deeds and other underlying documents such as easements and right of way documents that have been filed and recorded pertaining to the property. If any outstanding issues are found that hinder clear and marketable title, we will work with all parties involved to ensure that those items are satisfied or paid off prior to closing.

Property Inspection IssuesTo truly understand the scope of repairs that a property may need and what its current condition is, it is important to conduct a full property inspection. A thorough property inspection includes a check of the property’s roof, plumbing, electrical system, HVAC system, structure, insulation, ventilation, and more. A separate pest inspection is also important to check for termites and other wood destroying organisms. It is also important to do a thorough walk-through of the property prior to closing to make sure the condition of the property hasn’t change since the property inspection.

Our Real Estate Attorneys Can Guide You Through the Due Diligence Process
Comprehensive and meticulous due diligence is critical to ensure your investment is sound. The best way to ensure proper due diligence is to hire experienced real estate experts at Jurado & Farshchian, P.L., who have worked on transactions of all shapes and sizes. We can help move due diligence along and address any concerns you may have. We know what it takes to ensure an effective and expeditious due diligence process.

To learn more, I invite you to call me directly 305-921-0440 or email us at [email protected].

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