Due Diligence What?

     When we are serious in buying a certain Real Estate property we usually ask for documents related to it like title, tax declaration, lot plan, etc. And after securing a copy of these documents what would you do next?
     For a "competent" Licensed Real Estate Broker he would conduct a due diligence work on the property you are selling or buying.

BASIC DUE DILIGENCE WORK
in REAL ESTATE

1. Always ask for a written authorization to verify the documents of the property from the SELLER/OWNER for you to secure "certified true copy" from concern government agency.  Comes with the authorization is a photocopy of any government issued IDs of the SELLER/OWNER.

2. If the owner is out of the country SELLER/OWNER should issue a Special Power of Attorney.
    - Make sure that the Special Power of Attorney is specific and consularized
    - Verify the authenticity of the SPA with the concern government agency

3. Secure clearance from the Homeowners Association if the property is located in a subdivision.

4. Request owner/seller a copy of latest utility bills related to the property and verify from the utility companies if their are any arrears related to the said account.

     Due Diligence work should not be limited to Real Estate documents per se but should also focus on the capacity or authority of the seller to sign documents to consummate a sale.
    Buying and selling of Real Estate property nowadays tends to become more complex and complicated because of some government laws and  regulations. But this should not be the reason for you to be afraid in pursuing of acquiring your dream home.  These Laws and regulations are in place primarily to protect the public interest in general.


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