Australian Real Estate and Property

Due Diligence

Please see below some suggestions when conducting due diligence prior to a property purchase

  • Check the position of sewer line and connection point e.g. with the Water Board.
  • Request e plan sewer plan from the Water Board.
  • Ring the Local Council and ask when was the sewerage connected?
  • Ring the Local Council and ask about the zoning or residential design code?
  • Check with the Local Govt Planning Dept if any changes are scheduled that may effect the property?
  • Is the property heritage listed?
  • Complete a property physical inspection report, document your inspection and evaluation.
  • Take photos of the property interior and exterior at the final inspection and for your record.
  • Sales and listing evidence:   inspect other properties for sale or if possible have sold in the area.
  • Certificate of title:  check encumbrances/ easements etc part of contract or view pre purchase.
  • Always check the comparative sales data and conduct an analysis.
  • Check with the Local Building department:  what has been approved or not approved e.g. additions, improvements, retaining walls,  below ground pools, pool fences etc
  • Obtain a copy of the building plans from the local council.
  • Check for any road widening with the Local Govt Engineering Dept.
  • Any other road works that may effect the property?
  • Follow up the satisfaction of all the conditions of the contract for sale of land/property.
  • Building Inspection Report: Is it satisfactory?   Learn how to write up building inspection report conditions that protect you and if not satisfactory how to negotiate a suitable outcome e.g. exit from contract and place vendor and listing agent under high pressure.
  • Termite Pest Report.  Now offer thermal imaging technology for a low additional cost. Is it satisfactory?   Learn how to write up termite pest report conditions that protect you and if not satisfactory how to negotiate a suitable outcome e.g. exit from contract and place vendor and listing agent under high pressure.
  • Site Survey is satisfactory.  How to write up conditions that protect you.  Use general and non specific terms to allow you full exit if required.
  • Appliances in good working order at final inspection is very important. Must do this.  Do not believe the Listing Agent. ” she’ll be right mate “
  • Review lease document part of condition of contract.  Is the tenant on a periodic lease and do they actually pay the rent claimed?
  • Seller warrants that all improvements are shire approved and order building plans from council.
  • Real Estate Institute Sellers Disclosure statement. Full disclosure.  Protects you and is legal document part of condition of contract.
  • Conduct your own due diligence pre purchase or make it part of contract conditions.
  • Supply keys at final inspection is a contract condition.
  • Seller warrants that the property is connected to sewer  and no septics.
  • Buying remotely contract condition:  is your representatives satisfactory viewing or your viewing within so many days etc.

For further information utilise our search button

Please see our disclaimer

 Subscribe to our FREE newsletter or RSS feed. Receive updates in My Yahoo!, Google, and others. .

Australian Real Estate and Property