Due
Diligence are the legal steps taken by someone in order to accomplish all legal
matters associated with buying or selling of the property. The process of Due
Diligence is a very important process when you are purchasing a property. Purchase
of a property, whether for the purpose of rehab or for personal use, always
involves lots of money.
The
buyer is always ready to fulfill all of the legal and moral requirements before
finalizing the deal. This accomplishment of all formalities results mostly in
successful deals. Another reason behind successful deals is keenness and
serious behavior of buyer as well as seller. Accomplishing all legal
requirements before the parties sit on the table is often helpful. It makes
sure that there are no loop holes remaining. Such kind of behavior ensures that
there is very little or no room left for disputes or frauds.
With the
help of Due Diligence, buyers search for all of the aspects of property. It is
a very important process whether you are buying a plot, commercial or
residential building. The process involves collection of all of the facts
related to the said property. Dean
Graziosi
believes that although buyers go for all possible ways to find out facts, they
often miss some very clear clues.
Most of
the cases in which buyer suffers from loss or a dispute springs up, is due to
lack of Due diligence. Dean holds the opinion that the buyer must go out of the
box in order to make the deal work out. Dean Graziosi is a real estate
millionaire. He has set his career with the help of real estate, a career that
can stand out of the crowd. Dean believes that if one is wishing to get success
in the world of real estate, then he must go for the new and modern ways along
with classical ones.
Dean
believes that without introducing modern technology in to the process of real
estate we cannot predict successful business. Modern technology is also very
helpful in the process of Due Diligence. Let us have a look on the resources
that we can use in finding out facts about the property.
Sales and Ownership Data:
For any
property the most accurate data hub are documents submitted for taxes and other
real estate documents. All these documents
are kept on two sources. Out of these two sources the primary source is
believed to be the more accurate source of genuine data. All of the real estate
recorded documents (deeds, liens, restrictive covenants, easement and
subdivision plans etc.) the primary source documents are maintained by applicable
government department.
The
related government data not just hold documents itself, but it also holds
accurate related information. In most of the States, these documents are kept
at court departments known as Recorder of Deeds at some States, whereas, Tax
Assessment Department at the other places. Usually title companies are used to
collect the information from government departments.
Data Based Tools:
Data
based tools are also used to search information. Although these tools are not
an appropriate substitute for research described above, they come plenty
helpful if you use the tool in accordance with your State and area. Another
disadvantage of this system is the source of information is not primary. As
discussed above, the further you move towards primary source, the closer you
are to accurate information.
Some
companies update their tools on regular basis, others just fill the void and do
not bother to update the software hence the chances of mistake in these tools
are far greater as compare to research conducted with the help of primary
source documents.
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