Authored by Johnny Dunn in Real Estate
Published on 03-17-2009
Due diligence is the driving force in land development transaction. It supplies you with the information you may need about the issues when buying real estate that range from zoning to subdivisions of the property. This need for information does not end until you are finished with the transaction or contract. Due diligence is all the investigation and research you should conduct before performing any transaction. Due diligence is imperative when buying land. Here’s what you should know about it.
Remember, you don’t necessarily need to find out all of this yourself. You can get someone who has been trained to do it, someone professional.
The first thing you should know before purchasing land is the specifications of the land, especially its size. With modern technology, it is definitely possible to find out the precise location and specifications of the land you want to buy. You can do this yourself with your own GPS device but it’s better if you ask a professional or someone whose been trained to do it. Or just ask for it, and don’t settle for estimates, every detail counts; you should know what you’re buying before you buy it.
How unfortunate it would be if you buy a piece of property only for it to be repossessed by the government immediately after because the previous owner did not pay any of his/her taxes. Sometimes, the person doesn’t necessarily refuse to pay, but doesn’t even know the tax laws on his/her own land. Due diligence requires you to fully understand and comprehend whatever tax laws apply to your land.
Zoning is another one of the most important aspects of due diligence. This one actually has two parts. The first one has to do with the general zoning laws that relates to whatever area you’d like to pay. Every area has some general zoning laws that apply to whatever parcel of land that is located in that area. These laws specifically tell you what can and cannot be done with your land; say you want to buy a house and a pool, but the property you’re buying the house on has laws pertaining to it that won’t allow you to build a pool. That’s definitely something you should take into consideration before buying a house. The other zoning part is the specific zoning regulation in the land that you wish to buy. In most cities and regions, there are specific zoning regulations for specific pieces of land. Don’t forget about the general zoning regulations though. All zoning laws should be an important factor into whether or not you truly want to purchase the land.
Remember, it is your right to know whatever things you need to know before purchasing any land. Don’t be hasty and you won’t get scammed. Sometimes you shouldn’t believe everything the person selling the land to you as the truth, he/she might be leaving something out in order to get you to buy that land, or maybe he/she did not bother enough to find out all the bits and pieces of information that pertain to the land. You should.