2. If you’re selling a property, you need to do your
due diligence. It not only protects you from the
unexpected, but the information might help you
sway a potential buyer. A seller who knows
every detail about a property can influence a
buyer’s perception of the value. Following are
four areas you should check before you list a
property for sale:
3. Environmental Investigation of Your Property:
Regular monitoring should be considered, as it
serves as proof that the area is free of harmful
contaminants.
4. Deed, Survey and Legal Description: Ensuring that
the deed is, in fact, in your name ahead of time will
save a great deal of time,
money and headaches.
There are two common
reasons why the name(s)
on the deed could affect
the completion of a sale.
Fraud is one example and
involves the changing of the
ownership on the deed without
the proper owner even being aware.
Partnerships and incorporation agreements can
further complicate the sale of a property. Legal
representation may be required in order to
distinguish signing authority in these instances.
5. An accurate and updated survey clearly outlines
the boundaries of the property and identifies
any boundary violations affecting the property.
Your fence may, in fact, be on the neighbor’s
property or vice versa. Identifying discrepancies
like this in advance will save you both time and
money come closing.
6. Easements and Rights-of-Way: Easements vary from
minor utility easements to major encroachments. A
minor utility easement occurs when the utility lines
(phone, electricity, water or sewer) run above your
property. Gas, water and sewer lines, and utility
wires in newer neighborhoods,
are underground. This creates a
more in-depth easement, as the
utility company reserves the right
to dig up the lines for repair and
or replacement and, thus has the
right to place restrictive covenants
on the property.
7. Restrictions and Covenants Connected to the
Property: Restrictive covenants affect the value of
the property by placing restrictions on a buyer.
There may be zoning restrictions that limit the
property’s development potential. Another type of
restriction that could affect the development
potential is imposed by utility companies. They
reserve the right to access the property and even
dig up sections for the repair and replacement of
the lines. This would prevent the property owner
from adding structures such as garages, sheds or
even fences that could hinder the utility company’s
access. A buyer who discovers this during his or her
own due diligence period is likely to request a
discount on the purchase price.
8. Sellers strengthen their negotiating power, and
save time and money, by identifying problems in
advance. When they complete their due
diligence, this allows sellers to avoid costly
mistakes and delays as they complete the sale of
their property.
