Title search and verification: Conducting a title search helps ensure that the seller has the legal right to sell the property. The title report should reveal any ownership disputes, unpaid property taxes or liens from creditors. Purchasing title insurance is also recommended to protect against any unforeseen title disputes or claims that could arise after the purchase.
Zoning compliance: Verify that the property’s current and intended use complies with local zoning regulations. Work with a real estate attorney to verify compliance and address any zoning restrictions that could impact future plans, such as expanding the building or changing its use.
Property surveys and boundary verification: A survey provides an accurate representation of the property’s boundaries. It ensures the building and any additional structures, such as parking lots, fall within the legal property lines while revealing potential encroachments or easements that could limit development. Identifying boundary disputes early on can save significant headaches and legal costs.
Insurance coverage: Review the current insurance policies on the property to determine whether the existing coverage is adequate. In addition to the standard policy, verify that there is sufficient disaster insurance if the property is in an area prone to floods or earthquakes.You should also check for pending claims that could affect the property’s insurability or increase premiums.