What To Keep In Mind On Environmental Due Diligence?
When it comes to environmental due diligence, there are actually a number of steps involved in it. Assuming that everything’s done right, the associated risks with land development are reduced greatly and the odds for making profit are substantially 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 all know that buying a land is quite a risky decision and it is ideal to try to minimize all potential risks from the start. Normally, land purchase contracts go through various revisions and negotiations and it’s more difficult when the contract has been signed in getting both parties agree on the 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 – does it seem that something is suspicious on the land title or in other words, are you sure that the title to the property is clean? As the buyer, it’s your responsibility to review all the 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’ve got to review the documentation yourself too.
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 are anything from 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 – another thing that should not be forgotten in environmental due diligence are 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.