Property Law Videos - Due diligence document check before buying property

It is important that due diligence is exercised before any property is purchased. Due diligence consists of a number of steps.
Due diligence basically refers to the investigation of the subject matter of, usually, a contract. Even though it can be a legal obligation, it is most often undertaken voluntarily for the safety and certainty of the funds being spent when purchasing a property.

These steps are, therefore, taken in order to exercise being careful.

There are a number of steps which need to be kept in mind while exercising the processes of due diligence and some of them are discussed in the video. The degree of information available with regard to the steps needed to be taken before buying a property have made the process a lot safer and easier in today's times. 

Some of the common do's of due diligence include: 

Checking costs other than the quoted per square feet rate, such as floor rise, parking, stamp duty, registration fee, etc. 
Checking that the land on which the property is being constructed is not under any legal dispute and that the papers are clean.
Some of the common don'ts include:
Check the net EMI outflow as this should not exceed 35% of the net monthly take home, this will help reduce the stress level substantially.
Check the exact size(carpet area) of the flat. Most of the customers take the word of builder for the size, however, this should be checked before a purchase is made. 

An example of a major ‘do’ in this regard is finding out about the legal facts related to the property. One must know about all legal matters, if any, related to a property being purchased. It is important to know about the status of any cases going on in the court where the property in question is the subject matter of the case. 

As pointed out in the video, the risk of not exercising due diligence properly is that there is a chance of being duped of a huge amount of money. Therefore, it is of crucial importance that due diligence is not exercised in the proper manner before a property is purchased. The help of lawyers as well as due diligence agents can be taken in this regard. 

The chances of making a wrong purchase or a bad purchase and thus, losing out on hard-earned money, are actually lessened to a very great extent if due diligence is exercised carefully and if the investigation is executed well enough.