February 25, 2014

Doing Your Real Estate Due Diligence

Buying property in California–especially in Los Angeles or Beverly Hills–can be an expensive venture. Consequently, it’s imperative that you do your due diligence, regardless of whether the property is residential, commercial, vacant land, or some other form of real estate. Each of these has its own due diligence checklist. In this blog, we will focus on residential property.

Your due diligence as a buyer of a residential property should include the following:

  • Property Investigation.
    • A potential buyer should order inspections, including a pest inspection and home inspection, research permits and zoning, shop for hazard insurance and investigate environmental factors that may affect the property’s value and usability.
    • As part of this, a survey should also be done. This will allow a potential buyer to visually understand where any easements or licenses burdening the real estate are actually located and whether the scope of use set forth in the recorded document is acceptable based on its location
  • Securing Financing.
    • A potential buyer needs to determine how the purchase will be financed–unless you’re prequalified for a mortgage or paying cash.
  • Reviewing Homeowners’ Association (HOA) Documents.
    • You may have HOA CC&Rs that may affect how you can use the property. These need to be thoroughly reviewed by a qualified real estate lawyer.
  • Title.
    •  Each of the recorded titles should be reviewed in detail for any irregularities.
    • You may wish to explore title insurance.
  • Reviewing The Purchase Documents.
    • It’s in your interest as a prospective buyer to have the purchase agreement, disclosure statements, and escrow instructions carefully reviewed.

Here at Beverly Hills Law Corp., PC, our lead attorney, Sagar Parikh, Esq., is both a real estate broker and a real estate attorney. He’s uniquely qualified to assist you with all facets of real estate transactions.

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