Written by Grace Karanja
This is one of the many processes undergone by a house/property buyer. It is the process of confirming the legal status of a property. Due diligence is made up of the following sub-processes.
- Verification of title information– when it comes to buying land, land title certificates prove to you that it belongs to them (the seller). Verification of the land titles is essential to help ensure the buyer is not conned into buying non-existence land/ property. Lately, fake land titles are being processed.
- Confirmation of the property on the ground. Through the acquisition of the survey map for the subject property coupled with the site visit to the property, a valuer/real estate professional will be in a position to confirm whether the property is indeed the right property as it appears on the survey maps and on the ground.
- Market evaluation – determines the value of a piece of property and the profit range the buyer will get from the area the property is located. Gives information on whether the property is worth investing in or will cost you more than it’s worth.
- Financial confirmation – you get to have a clear picture of your investment. Is it profitable – this is for the buyer who is planning on using the house/property as an investment. Is it easy to maintain?- this is for the home buyer. No one needs a house that will be expensive to maintain.
- Basic property information – the construction and accommodation details for the building and the attributes of the land.
- Environmental and Geotech reports – explain the impact of your property on the environment.
- Apa compliance – utilities and amenities incorporated to support disabled residents. This only applies to commercial buildings and flats.
- Occupancy certificates and licenses – this will determine the payment structure, deposits, and advance payments.
- Personal research – it is advisable for a buyer to do research on the property as it will guide him or her on whether to do further research or not.
- Zoning verification – there are different zones for building commercial buildings, zones for flats, and zones for private homes. The land is normally divided into different zones. For instance, in Runda you can’t build flats or a three-story home.
- Tenancy investigation – if it is a rental building, you’ll get to know what type of tenants have been renting it, do they pay on time, and are they high end.
Once you have done all the above then you are ready to buy a house.