Due diligence: how to avoid disaster
Lawyers, mortgage brokers, surveyors, architects and other professionals regularly see the fallout from poor or non-existent due diligence.
Friday, April 8th 2016, 8:00AM
by The Landlord
The repercussions of a lack of due diligence or of substandard reports can cost investors tens or even hundreds of thousands of dollars.
So how can an investor avoid the pitfalls of due diligence gone wrong?
In the April issue of NZ Property Investor magazine, our journalist searches out the answers for investors.
She finds that some of the common problems stem from such things as not getting professional assistance to interpret complex information, title discrepancies, hidden environmental hazards and dodgy building inspectors.
There are ways to avoid these stumbling blocks, which are detailed in this month’s NZ Property Investor.
But our journalist also suggests the following steps are necessary to achieve minimum due diligence:
• Seek valuations.
• Pay for a building report.
• Ensure you can get a mortgage and that the property can be insured.
• Understand the LIM report and the council property file.
• Get a lawyer to check the title and other documentation.
• Source additional reports where there is a risk of meth contamination, leaky home syndrome or other environmental hazards.
To find out more about avoiding due diligence disaster, click here to get the digital issue of NZ Property Investor magazine.
Subscribe to NZ Property Investor magazine here to get great stories like this delivered to your mailbox every month.
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