Due diligence of property is the process of verifying the ownership of the property, defect, if any in the chain of ownership and to ascertain if there are any encumbrances/claims against the property. Due diligence is carried out in connection with an action significant enough to make the investigation worthwhile.
One needs to ascertain some significant factors to avoid any later legal battles before buying or leasing any property. The following factors are to be taken care of –
The object behind Due diligence is to ensure that investment in a property is safe and secure. After exercising due diligence, the buyer identifies and evaluates all the risks involved in buying/financing the property in question, which is followed by the steps to minimize those risks.
What is the standard due diligence period?
The recommended due diligence period is 10 days from the date the seller accepts your offer because of the multiple steps and parties involved when you are in the process of buying a home.
What is legal due diligence?
Legal ---- related to Law; Due ---- proper; Diligence ----- any act done meticulously/ scrupulously
When should I consider property investment due diligence?
Due diligence is advised when you are considering investing in commercial real estate or if you wish to sell your commercial property to a potential buyer.