A real estate lawyer in Long Island NY can explain that due diligence is the process used to minimize the risk of making certain purchases. Due diligence helps to uncover unknown problems so that the buyer can make a more informed purchasing decision. A real estate lawyer in Long Island NY can assist with this process.
A real estate lawyer may begin the due diligence process by looking the chain of title to see if there are any encumbrances that may affect the value of the property. He or she may also investigate zoning ordinances and potential changes in the law to determine if the purpose of the purchase may be thwarted. A real estate lawyer may also complete an ecological report if the environment may be impacted by the purchase.
A real estate lawyer may contact a number of parties to assist with the process. Third parties may consult, inspect, review, conduct a survey or provide other services as part of the due diligence process. A real estate lawyer often has existing relationships with these individuals and knows that they will conduct themselves in a conscientious manner.
Due diligence helps avoid the application of caveat emptor – or buyer beware. This process helps the buyer uncover critical information about the purchase before contracting for it, possibly saving hundreds of thousands or even millions of dollars off of a bad investment.