What To Keep In Mind On Environmental Due Diligence?
In reality, there are several steps involved when it comes to 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 before you decide to sign a contract with the seller is negotiating clearly all terms you need in environmental due diligence. In the event that you and the seller has understood all of the expectations of both sides particularly with regards to due diligence, you’ll be able to avoid problems to happen. 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. Normally, land purchase contracts go through various revisions and negotiations and it’s more difficult when the contract has been signed in getting both parties agree on the 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 put it simply, does the property’s title come clean? As the buyer, it is your job to review all reports as well as the underlying documents that can 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 – you need to check if there are encroachments from the adjoining land on your properties or vice versa when it comes to environmental due diligence. Encroachments can be 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.