1. Establish Property Ownership
Confirm the seller has clear title to the property and is lawfully empowered to sell. Obtain a title search through either a title company or attorney.
2. Investigate Zoning Requirements
Obtain information regarding zoning laws, such as what will be acceptable uses for your residential, commercial, or mixed use.
3. Inspect Boundaries
Verify property boundaries through a professional survey to avoid disputes with neighbors and ensure the land matches the description in the title.
Also read:
- https://primelegalguide.com/30-questions-about-property-disputes-and-how-to-resolve-them/
- https://primelegalguide.com/40-steps-to-legally-transfer-property-ownership-without-errors/
- https://primelegalguide.com/20-faqs-on-property-law-for-landowners-and-tenants/
4. Check for Easements
Determine if there are any easements on the property, which could allow others access or rights to use parts of your land, such as utility companies or shared driveways.
5. Investigate Liens or Encumbrances
Ensure that the property has no liens or encumbrances, like unpaid taxes or debts, that may pass on to you once you purchase.
6. Understand Local Taxes
Research local taxes and special assessments in the locality so that you will not face an unexpected tax burden after buying.
7. Title Insurance
Get title insurance, which covers the possibility of some unknown lien or boundary issue regarding the ownership of the property.
8. Know Your Financing Options
Understand your mortgage options, interest rates, and terms. Get pre-approved for a loan to streamline the purchasing process.
9. Review Homeowner Association (HOA) Rules
If the property is part of an HOA, review its rules, regulations, and fees to ensure they align with your expectations and financial situation.
10. Verify Building Permits and Compliance
Ensure all structures on the property have proper permits and are in compliance with building codes. Unauthorized additions or renovations could result in fines or demolition orders.
11. Know Environmental Regulations
Look for environmental concerns such as flood zones, protected wetlands, or contamination that may limit the use of the property or increase maintenance costs.
12. Review Property Disclosures
The sellers must disclose known problems with the property. Be sure to read through these disclosures for warning signs such as structural damage, water intrusion, or pest infestations.
13. Home Inspection
Hire a licensed inspector to assess the condition of the property, including structural integrity, electrical systems, plumbing, and HVAC.
14. Utilities and Services
Verify availability of utilities including water, electricity, and sewer lines. For rural properties, ensure that the well water and septic systems are up to code.
15. Research Neighborhood and Development Plans
Find out about the neighborhood’s safety, amenities, and future development plans to ensure that the area will fit your lifestyle and investment goals.
16. Understand the Purchase Agreement
Review the purchase agreement carefully with your attorney or real estate agent to ensure that all terms, contingencies, and deadlines are clear and favorable.
17. Know Your Closing Costs
Be prepared for closing costs including title insurance, escrow fees, property taxes, and attorney fees. They can amount to 2–5% of the purchase price.
18. Assess Insurance Needs
Research the property insurance needs, which include coverage for floods, earthquakes, or hurricanes depending on the area.
19. Check for Rental Restrictions
If you intend to rent out the property, there should be no local or HOA restrictions against short-term or long-term rentals.
20. Research Access and Right-of-Way Issues
Ensure the property has legal and practical access, especially in rural areas, so that you are not involved in disputes over private roads or shared driveways.
21. Water Rights
Some areas may verify if water rights are part of the property, especially for agricultural or rural land.
22. Maintenance Responsibilities
Understand the cost and responsibility to maintain the property, such as landscaping, snow removal, or shared driveway maintenance.
23. Development Restrictions
Determine if covenants, conditions, and restrictions (CC&Rs) exist that might limit your ability to build or modify structures on the property.
24. Investment Potential
Analyze possible rental income, appreciation trends, and demand for investment properties.
25. Legal Counsel
Use an attorney or an agent or a broker experienced in real estate matters to walk you through the technicalities of acquiring property, while ensuring that you are not hurt by their move.
With the above considerations covered before purchasing the property, one is guaranteed an easier deal without any litigations, besides making the best investment choice.
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