All You Need To Know About Due Diligence
Posted on: 31 March 2021
Buying your first home can be a challenging task. Other than choosing an appropriate home, you have to conduct some due diligence to ensure the house is safe to inhabit and that the purchase does not lead to legal and financial liabilities in the future.
A conveyancer is a professional who conducts due diligence and deals with the legal aspects of purchasing a property. The excerpt below discusses what kind of due diligence your conveyancer should perform before you buy the property.
Zoning Regulations
Your conveyancer will examine zoning regulations to determine the legality of the development. For instance, you cannot put up a commercial building in an area zoned for residential developments. Additionally, zoning regulations may determine the type of fence you should erect, the orientation of your home, the colour of your exterior and what installations you can construct at the front of your home.
Strata Bylaws
If you intend to purchase property with a strata title, you must familiarise yourself with the strata bylaws. For instance, are you allowed to keep pets? What activities are restricted on the premises? How many parking slots will you have? Additionally, you must check the finances of the owners association. Check the annual contributions. Avoid debt-laden or bankrupt schemes.
Building Permits
The conveyancer will examine building permits to ensure the local council approved the development. It also guarantees that the builder followed the building code. The conveyancer will also check the certificate of occupation provided by the certifier who inspected the construction works. If the property has a swimming pool, the owner should provide a permit from the local council. They should also produce home extension licences.
Title
The conveyancer will conduct a land search to ascertain that the property is registered in the owner's name. If the property is part of a trust, they will examine legal documents to determine the trustee and beneficiaries of the property. Further, the conveyancer will ensure that the title has not been used to secure bank loans or hard money loans.
Home Inspection
A home inspection seeks to establish the structural integrity of the home, the condition of various amenities, the presence of pests, and the need for minor or major repairs. The pre-purchase inspection report will help your conveyancer to negotiate a suitable buying price. More often than not, the contract of sale compels the seller to renovate the house or lower the buying price if the house has significant defects.
Due diligence will help improve your confidence when buying property. An experienced and licenced conveyancer will guide you through the process. If you have additional questions, contact a local conveyancing service.
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