Environmental Due Diligence
As a matter of fact, there are a lot of steps involved in doing environmental due diligence. Assuming that everything’s done right, the associated risks with land development are reduced greatly and the odds for making profit are substantially increased.
Negotiating your terms clearly in environmental due diligence is the first step before you decide to sign a contract with the seller. You can avoid problems to arise in the future say that you and the seller as well has understood all that is expected of both sides, particularly in due diligence period. But just to be sure that the transaction goes smoothly and no problem will arise, it will be ideal if you are going to contact a lawyer to assist you in the process.
We all know that buying a land is quite a risky decision and it is ideal to try to minimize all potential risks from the start. In most instances, land purchase contracts go through different revisions and negotiations and it’s more difficult when the contract has been signed in getting both parties agree on contract amendments. Like what’s mentioned earlier, there are several factors that go with the process of environmental due diligence which influences the decision of buying an unimproved land and these include the following.
Number 1. Title issues – does it seem that something is suspicious on the land title or in other words, are you sure that the title to the property is clean? As the buyer, it’s your responsibility to review all the reports and the underlying documents that may affect the property. It is advisable if you are going to hire a real estate lawyer who will review all documents on your part no matter if you’re amateur or a seasoned developer/investor. On the other hand, you’ve got to review the documentation yourself too.
Number 2. Survey Issues – when talking about environmental due diligence, checking encroachments from adjoining land on your properties or vice versa is a must. Encroachments are anything from utilities, neighboring buildings, water, fences and the likes. You and the seller as well need to resolve these issues before closing on the deal if there are any of it. Some issues might not be resolved or can be resolved in a timely manner and you have to decide if you still like to continue with the purchase even if there’s unresolved issue in the land.
Number 3. Land use approvals – the zoning regulations, building permits and approvals, site plan approvals, setback issues, lot size, fire safety issues, health issues like septic disposal, sewer, storm water management, rivers, wetlands, streams and so forth are something that you should not forget in environmental due diligence.
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