Due Dilegence: The process by which persons conduct inquiries for the purposes of timely, sufficient and accurate disclosure of all material statements/information or documents which may influence the outcome of the transaction.
The largest by far committed sin in representation is lack of Due Diligence.
A broker delays in taking your offer forward to buy a piece of property and after a delay goes forward with the offer only to find that another offer of like kind has been accepted.
A Broker receives a mass of documents to be presented to the Buyer prior to close. Things like condition of soil, nearness of the final approach of an airfield, the location of an earthquake fault line that might have a bearing on the property. Local Flood Zones and the list of prior water intrusions into the area of the designated Lot and Tract. The CCand R's which state that there is a regulation that forbids the keeping and feeding of Mother In Laws www.etc.etc.
The Broker takes his time and just sends them in the mail with instructions to the Buyer merely to inspect, sign and send back. The Buyer blows a fuse and cancels the deal more out of spite then anything else but the reason is failure of the Broker to sit there and explain each item as the Buyer signs his acceptance.
The Marriage Councelor who neglected to inform you that the girl you are about to marry was formaly the girl friend of your best friend. Had two children by him and one is dating your mother. Small matter but all part of the same problem.
Here is an answer in plan Southern English that may help:
"Check out the crap you been told by the seller or their agent."
Make sure you want to buy the property by checking comps, have property inspected, look over leases, maintenance records, contracts with vendors, zoning, utility easements, etc etc. This is also called a free look. Make sure you get all this done before the earnest money goes at risk or you may loose your money and not want to buy the property because of something bad you found.
Hope this helps some
Here is an answer in plan Souther English that may help:
"Check out the crap you been told by the seller or their agent."
Make sure you want to buy the property by checking comps, have property inspected, look over leases, maintenance records, contracts with vendors, zoning, utility easements, etc etc. This is also called a free look. Make sure you get all this done before the earnest money goes at risk or you may loose your money and not want to buy the property because of something bad you found.
Hope this helps some
Due diligence as far as earnest money is concerned has to do with the dates in the contract. It ensures that you apply for the mortgage by the date stated and recieve commitment as well as do the inspection etc.
Due Dilegence: The process by which persons conduct inquiries for the purposes of timely, sufficient and accurate disclosure of all material statements/information or documents which may influence the outcome of the transaction.
The largest by far committed sin in representation is lack of Due Diligence.
A broker delays in taking your offer forward to buy a piece of property and after a delay goes forward with the offer only to find that another offer of like kind has been accepted.
A Broker receives a mass of documents to be presented to the Buyer prior to close. Things like condition of soil, nearness of the final approach of an airfield, the location of an earthquake fault line that might have a bearing on the property. Local Flood Zones and the list of prior water intrusions into the area of the designated Lot and Tract. The CCand R's which state that there is a regulation that forbids the keeping and feeding of Mother In Laws www.etc.etc.
The Broker takes his time and just sends them in the mail with instructions to the Buyer merely to inspect, sign and send back. The Buyer blows a fuse and cancels the deal more out of spite then anything else but the reason is failure of the Broker to sit there and explain each item as the Buyer signs his acceptance.
The Marriage Councelor who neglected to inform you that the girl you are about to marry was formaly the girl friend of your best friend. Had two children by him and one is dating your mother. Small matter but all part of the same problem.
Educating. Lucius
Here is an answer in plan Southern English that may help:
"Check out the crap you been told by the seller or their agent."
Make sure you want to buy the property by checking comps, have property inspected, look over leases, maintenance records, contracts with vendors, zoning, utility easements, etc etc. This is also called a free look. Make sure you get all this done before the earnest money goes at risk or you may loose your money and not want to buy the property because of something bad you found.
Hope this helps some
Ted Jr[ Edited by Tedjr on Date 11/18/2003 ]
Here is an answer in plan Souther English that may help:
"Check out the crap you been told by the seller or their agent."
Make sure you want to buy the property by checking comps, have property inspected, look over leases, maintenance records, contracts with vendors, zoning, utility easements, etc etc. This is also called a free look. Make sure you get all this done before the earnest money goes at risk or you may loose your money and not want to buy the property because of something bad you found.
Hope this helps some
Ted Jr
Due diligence as far as earnest money is concerned has to do with the dates in the contract. It ensures that you apply for the mortgage by the date stated and recieve commitment as well as do the inspection etc.