What to Check Before Buying Any Property

Due diligence is not a bureaucratic exercise. It's the set of checks that protect you from buying a problem you didn't know existed. Here's what to cover before you commit:

A property title should be free of disputes, unpaid liens, legal claims from other parties, or complications from previous ownership. Your lawyer in the relevant market runs a title search to confirm this. Do not skip it. A property with a title problem is a legal problem that stays with you after the purchase.

The property matches what's listed. Photos and descriptions on a listing are chosen by the seller. A physical inspection, or a professional inspection if you can't be there, confirms that the property is what it appears to be. Structural issues, damp, roof problems, or undisclosed renovations that don't have the right permits: these are things a listing doesn't show you and an inspection does.

The price is reasonable in context. Search five to ten comparable properties in the same area before you finalise your offer. A property priced significantly below comparable listings usually has a reason. A property priced above them should have an obvious justification. Price context tells you how much room there is to negotiate and whether you're buying at fair value.

The purchase costs are accounted for. Legal fees, property transfer tax, inspection costs, and any mortgage arrangement fees add up to 5 to 10 percent of the purchase price in most markets. If these aren't in your budget, the financing falls short at completion. Build them in before you make an offer.

The seller's position is clear. Is the seller the legal owner of the property? Are there co-owners whose consent is required? Is the property mortgaged, and if so, how does that affect the transfer? Your lawyer handles most of this, but knowing the questions exist means you can ask them.

Due diligence done properly takes time. It also prevents you from completing a purchase that costs far more than you paid for it.

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