All About Environmental Due Diligence You Must Know
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.
The first step before you decide to sign a contract with the seller is negotiating clearly all terms you need in environmental due diligence. Say that you as well as the seller understand all that’s expected of both sides, especially in due diligence period, you can avoid problems in the future. 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 know that trying to buy a land is very risky decision and it is preferable if you are going to minimize the potential risks from the very beginning. Most of the time, land purchase contracts are going through numerous revisions and negotiations and it’s more difficult when the contract has been signed to get both parties agree on contract amendments. Like what mentioned earlier, there are a number of different factors that go with the entire process of environmental due diligence which can influence the decision of buying an unimproved land and these are as follows.
Number 1. Title issues – are there anything suspicious on the land title or in other words, does the seller has a clean title to the property? As the buyer, it’s your responsibility to review all the reports and the underlying documents that may affect the property. Hiring a real estate lawyer to review all the documents on your behalf is strongly recommended regardless if you’re an amateur or a seasoned developer/investor. On the other hand, you at the same time has to review the documentation yourself as well.
Number 2. Survey Issues – when it comes to environmental due diligence, you have to check if there are encroachments from adjoining land on your properties or vice versa. Encroachments can be utilities, neighboring buildings, water, fences and the likes. If there are any of it, you as well as the seller need to resolve these issues before closing on the deal. Some issues might not be resolved or it can be resolved in timely manner and you have to decide if still wish to continue with the.
Number 3. Land use approvals – also, you must not forget about 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 in environmental due diligence.
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