Purchasing and owning real estate is always high risk, whether it’s a single family home that you’ll occupy a apartment building for income. You’ll hear experts say to make sure to “do your due diligence” when buying property, but what does that actually mean? What is due diligence.
Due diligence means taking caution, performing calculations, reviewing documents, procuring insurance, walking the property, etc. essentially doing your homework for the property before you actually make the purchase. If there are too many issues with the property and that means too much potential risk and cost, then you can cancel your purchase agreement and look for a better property.
Here are just a few of the steps that apply to both personal residences and investment properties, although some may only apply to one.
SHOP THE MARKET PLACE
Make sure you know what the market has to offer. Too many people look at just a few properties, put in an offer and purchase. You should spend several months looking at properties before you buy.
Property inspection in India is a very important aspect so as to decide in such dealings. The said dealings with regard to Immoveable property are of different types like dealing by sale/purchase, dealing in lease, Partition, Development, Settlement, Gift, Exchange,etc and the said dealings requires proper enquiry, investigation, search, identification etc., to arrive at a just and proper conclusion for dealing with such properties. Since the administration of land and immoveable property in India is very wide and an old one which has to be dealt with from various angles in the light of various laws and enactments guiding such properties Viz., Urban Land Ceiling Laws, Agricultural Land Ceiling Laws, Assignment Laws, Inam Laws, Jagir Laws etc.,
TITLE TO THE PROPERTY
Did you look at the title abstract, this will help you see if there are some issues that should concern you. Talk to the title, lawyer to help you review the documents. Also look at the plat of the property, have the easements plotted by title and walk the property for encumbrances.
Those are just a few of the many items that make up due diligence when buying real estate. Remember, you have to do these before you close escrow on the property. If you fail to do the proper tasks, problems might arise that were preventable, and might make your real estate experience less than palatable, or downright life changing or they might cause you to lose all the money you’ve put into the property.
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