Though it may not seem like it, purchasing a home or commercial building requires many legal considerations. From negotiations to zoning laws, there are many things you must keep in mind when buying a property. Luckily, there are Montgomery County, PA real estate attorneys to help you during this process. Whether purchasing a residential home or commercial property, you must complete the due diligence process. Keep reading to learn more about this process and why you should invest in the help of a lawyer.
What does due diligence mean in real estate?
When someone purchases a property, due diligence is their right to investigate the physical location and the area around it. This is used to prevent potential buyers from ending contracts or being stuck with a property they are unhappy with because there is an issue with the building that was not addressed prior. This is a crucial form of risk management for both buyers and sellers.
For example, if someone purchases a home only to discover there was a death in the house or the next-door neighbors frequently have loud parties, they may be unhappy. However, Pennsylvania sellers have no legal obligation to disclose this information. As such, the homeowner may complete the due diligence process on their own terms.
How does the process work?
Due diligence allows potential purchasers of a property to enter the home and inspect the property and location without officially signing a contract.
To begin, you’ll want to conduct a thorough inspection of the property. This includes an array of physical attributes, like ensuring there are no structural concerns, problems with utilities, flooding hazards, or surveys that must be completed. Inspecting these elements will require the assistance of professionals like contractors, architects, and investigators to uncover any issues with the property. You’ll also need to look into any financial issues, such as Homeowner’s Association (HOA) fees, insurance costs, appraisals, and property taxes.
As a buyer, you have the right to ask the property owner to remedy any issues uncovered during the due diligence process. If the seller agrees to fix the problem, it’s imperative that it is included in your contract before signing.
How can a lawyer help?
Ensuring you have the assistance of an attorney to guide you through the due diligence process before purchasing a home or commercial property is essential. There are so many considerations to make that it can be challenging to ensure each factor is given the necessary time and attention. Similarly, you’ll need to review and sign a variety of legally binding agreements. Without extensive knowledge of the law, you may sign a contract without important terms or miss crucial information in a financial document.
As such, you’ll want to ensure you have the assistance of the legal team at Friedman Schuman to help you when purchasing a commercial or residential property. Our firm has the experience you need to help you navigate this process. Contact us today to learn more about how we can help you ensure any contracts you enter are in your best interest.