It’s a common phrase found in advertisements.
But what encompasses due diligence in a real estate transaction when a listing has this disclosure?
Please note, this is not specific legal advice, but here are some general types of due diligence that buyers should consider conducting before purchasing a property. Let’s use common due diligence tasks in Florida as an example.
- Title search: A title search will help determine if there are any liens or claims against the property that could impact ownership or the ability to sell the property in the future. A title search should also include code enforcement and a permit search.
- Property inspection: It’s important to have a professional inspection done to assess the condition of the property and identify any potential issues or necessary repairs.
- Zoning and land use restrictions: Buyers should verify the zoning regulations in the area where the property is located and any applicable land use restrictions that could impact their plans for the property.
- Flood zone determination: Florida is known for its susceptibility to flooding, so it’s important to determine whether the property is located in a flood zone and what the flood insurance requirements are.
- Market analysis: Conducting a market analysis of the surrounding area can help determine the property’s potential rental income, resale value, and the demand for the type of property.
- Insurance: Buyers should consider the cost of insurance and any requirements for specific types of coverage, such as windstorm or hurricane insurance.
- Environmental hazards: Florida has a history of environmental hazards such as sinkholes, contaminated soil, and high radon levels.
- Property taxes: Buyers should determine the property tax rates in the area and any recent changes in tax rates that could impact their investment.
It’s important to note that this is not an exhaustive list, and buyers should seek guidance in conducting due diligence before purchasing a property of any kind in any location.
Driftmark Properties 