Environmental Due Diligence
As a matter of fact, there are a lot of steps involved in doing environmental due diligence. Let’s assume that things are done right, the risks associated with land development can be significantly reduced and the odds for making profit are increased.
The first step prior to signing a contract with the seller is to negotiate clearly all the terms you require 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. This is basically when a lawyer will come into the scene to ensure that the transaction goes smoothly and no problem will arise.
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 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. It is strongly recommended regardless if you’re an amateur or a seasoned developer/investor to hire a real estate lawyer to review all documents on your behalf. 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. 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 – another thing that should not be forgotten in environmental due diligence are 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.