All About Environmental Due Diligence You Must Know
When it comes to environmental due diligence, there are actually a number of steps involved in it. Let us say for example that everything is done correctly, the risks associated with land development are significantly reduced while the possibilities for making profits are increased.
The first step before you decide to sign a contract with the seller is negotiating clearly all terms you need 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. This is basically when a lawyer will come into the scene to ensure 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. In most instances, land purchase contracts go through different revisions and negotiations and it’s more difficult when the contract has been signed in getting both parties agree on contract amendments. Like what’s mentioned earlier, there are several factors that go with the process of environmental due diligence which influences the decision of buying an unimproved land and these include the following.
Number 1. Title issues – are there anything suspicious on the land title or put it simply, does the property’s title come clean? It is your job as the buyer to review all reports and the underlying documents that may affect the property. Hiring a real estate lawyer to review all the documents on your behalf is strongly recommended regardless if you’re an amateur or a seasoned developer/investor. On the other hand, you at the same time has to review the documentation yourself as well.
Number 2. Survey Issues – when talking about environmental due diligence, checking encroachments from adjoining land on your properties or vice versa is a must. 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 can be resolved in a timely manner and you have to decide if you still like to continue with the purchase even if there’s unresolved issue in the land.
Number 3. Land use approvals – 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 are something that you should not forget in environmental due diligence.