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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 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. Basically, this is when you should consider calling a lawyer to be sure that the transaction goes smoothly and no problem will arise.

We know that buying a land is risky and it is advisable to try minimizing all potential risks from the start. Most of the time, land purchase contracts are going through numerous revisions and negotiations and it’s more difficult when the contract has been signed to get 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 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 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 – 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. 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 – also, you must not forget about 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 in environmental due diligence.

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