Whether you’re buying a minivan or an apartment building, you want to know what you’re getting. The risk, of course, is just much greater when buying something of greater value. That’s where due diligence comes in. Anyone engaged in a deal – like buying real estate – should engage in some serious due diligence.
What Is Due Diligence?
Due diligence is “the care that a prudent person might be expected to exercise in the examination and evaluation of risks affecting a business transaction.”
Virginia is a Buyer Beware State. Under the Virginia Residential Property Disclosures Act, the buyer has the burden of making the sure property is satisfactory.
Seller Does Not Have to Guarantee Condition
Sellers do not have to make warranties or guarantees about the property. Buyers are advised to use due diligence to determine the condition of any real property before buying. For example, purchasers might want to obtain a home inspection before buying a residence.
Things Seller Is Not Responsible For
According to the Residential Property Disclosure Statement, the owner of the property also does not have to make any representations or warranties about the following:
- adjacent property,
- historic district ordinances,
- resource protection areas,
- sexual offenders living nearby,
- dam break inundation zones,
- storm water detention facilities,
- wastewater system,
- solar energy rights to install,
- special flood zone areas,
- conservation, or
- community development authority.
As you can see, the list is long. Buyers of real property need to be aware of these items as they conduct their due diligence.
Due Diligence Variations
As you might imagine, variables exist. For a residential property, you might be looking at different factors than for a commercial property. In certain areas of the state, underground oil storage tanks might be a primary concern.
Titles, however, are important no matter what property you are purchasing.
Address Issues Before You Buy.
And make sure your paperwork is all in order. The attorneys at Dillon Law Group, PLC, stand ready to assist you with your Virginia real estate purchase. Please give us a call at 757-962-4796 or use the convenient Contact Form on our website. We assist clients from Virginia Beach, Newport News, and surrounding communities.