The Hidden Secrets of Due Diligence: What They Don't Tell You Before Buying Land

You've probably heard it countless times: "Do your due diligence before buying land."

But here’s the thing—most people won’t tell you how to actually go about it.

Well, today, I'm breaking it down for you.

There are three key aspects of due diligence: legal, physical, and financial.

1. Legal Due Diligence

Start by verifying the property title and conducting a thorough search at the appropriate land registry. Ensure the property is free from encumbrances or any ongoing legal disputes.

2. Physical Due Diligence

Visit the property site to inspect the land’s boundaries, accessibility, and whether there are any encroachments. Check for environmental hazards like flooding or erosion. Also, assess the neighborhood—are there future developments, essential amenities, or infrastructure projects in the pipeline?

3. Financial Due Diligence

This is where many buyers slip up. Make sure the payment terms are clear and mutually agreed upon. Is the timeline favorable to your financial situation? If not, negotiate flexible payment plans to avoid unnecessary interest charges or, worse, forfeiting the land.

By paying attention to these three areas, you'll save yourself from costly mistakes.

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BunmiAluko

Able Worldmart Services