However in resale properties (real estate properties with private owners and no longer under the developers' disposition) the performance of due diligence is very important and should be conducted by real estate professional in investigating a real estate property.
Why Conduct Due Diligence?
In the real estate practice, there are only a handful of people who can perform or conduct a thorough investigation of such real estate properties in question but unbeknownst to them that the particular property they are buying could have legal complications which vary from different degrees that it can be resolved immediately or it is undergoing court litigation at the moment from the owners or heirs who are having some intra-judicial problems due to unequal sharing of an inheritance left by the original owner(s) is just one of the examples of this.
Consequences of Not Performing Due Diligence?
Some prospective buyers do the arms-length transaction
without knowing the problems attributed with the property leaving them scammed or duped with your hard-earned investment in the process without
knowing the intricacies of a thorough investigation. Like what
detectives do in a crime scene, the process of due diligence helps the broker(s) in finding problems of the property from legal problem, to site inspection, restrictions on use of property etc.
Conducting real estate due diligence is very necessary and important before the conduct of arms-length transaction between two parties (the seller and buyer). A knowledgeable real estate broker who is selling a property would go great depths in performing such tasks in a way that can give the buyer an assurance of safety against legal complications in the future.
Need advice, consult and assistance in conducting a due diligence on your real estate property in question, contact us here?
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