DUE DILIGENCE CHECKLIST

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Imperial Housing Limited Imperial Housing Limited Florence

1. Check out for the state of the Market.

This affects the pricing of the property. If the demand for good and quality properties is higher than the supply, the prices go up and vice versa.

Knowing the market state helps you ensure you do not end up paying more than you should.

 

2. Inspect the Property.

Do not pay for a property that you have not seen. We have fraudsters everywhere looking for someone to con. After seeing the property, ensure that you inspect it well to identify whether there are issues that would require fixing and cost you more money.

It's advisable to get a second or third opinion in this stage.

3.Appraise and Valuate Property.

An appraisal is an estimated value of a property or its market value while a valuation is the exact cost of the property. This information will help you review the future performance of your property, and makes you know whether it’s a sound investment opportunity or not.

4. Investigate the Title/Transaction details.

This requires you to identify the legal ownership of the property you are about to purchase from someone.

To facilitate this, ensure you do a title search at the Lands Registry, Ardhi House to avoid the issues of someone else claiming ownership for a property you've already purchased.

5.Check for Government Regulations.

This includes checking on issues that will have an impact on the property you are about to acquire. This involves ensuring that the area doesn’t lie in a flood zone, environmental hazards, whether you are well conversant with National Construction Act to avoid buying a property that will later get the big red X sign for demolition after pouring all your money into it.

It remains your sole responsibility, when buying real estate, to ensure that you get the asset you are paying for.

 

A good practice would then be to have a due diligence checklist to guide you through the process.

Read 457 times Last modified on Tuesday, 19 December 2017 10:07

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