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Due Diligence in Real Estate Transactions - Reyes Law Group

Due Diligence in Real Estate Transactions

“Due Diligence” – More Than Mere Words in a Contract!

Parties routinely throw around references to conducting “due diligence” in residential and commercial real estate transactions without truly understanding the complexity of what that entails and means. Black’s Law Dictionary defines due diligence as “such a measure of prudence, activity, or assiduity, as is properly to be expected from, and ordinarily exercised by, a reasonable and prudent man under the particular circumstances; not measured by any absolute standard, but depending on the relative facts of the special case.”  In practical real estate terms, due diligence is the voluntary exercise of investigations and examinations of critical components related to a real estate purchase to determine their condition and acceptability for purchase. These include reviewing and revealing the status of the property’s title, personal property conditions, land dimensions, building “wear & tear”, suitability for construction, environmental concerns, zoning, and more.

The purchase of a residence or commercial property is generally the largest and most significant purchase a buyer makes.  It also involves the law of real property, which is unique and raises special issues of practice, and problems not present in other transactions.  As a consequence, you need to know “what” you’re buying BEFORE you buy it.  And that’s where “due diligence” is critical.  And when the transaction involves a commercial piece of property, the scrutiny is heightened even further as additional questions come into play revolving around leases, tenants, estoppels, financing information, and more.

Due diligence starts from the “get-go”, to the extent we should know who the parties are with specificity, to the ordering, overseeing and/or reviewing of the title work, property inspections, survey, and more in the work of identifying issues of concerns for our clients.  This process continues throughout the transaction – through the actual closing – until you’re ready to send the client their recorded warranty deed and final title policy.

Most clients have no clue what the myriad of paperwork means, how it connects to one another other, and/or why you need it.  But you can be assured that today, even in the information technology age, some basic tasks never go away.  In fact, some, like conducting “due diligence,” remain as critical as ever to the proper contracting and closing of each and every single real estate transaction.

Seeking the advice and assistance of a lawyer is a very good idea from the time you decide to buy or sell a home, investment property, or commercial office building or condominium until the actual closing.  The Reyes Law Group can help you negotiate, draft & sign that contract, plus conduct the due diligence needed to assure you know what you’re buying the day you close.  Remember, YOU too deserve a passionate voice to help you negotiate, review and close your next real estate purchase all while, … preserving your rights!

Carlos J. Reyes  is the Principal of Reyes Law Group. He has been a member of the Florida Bar since 1988 and practices state-wide.  Carlos has been awarded a rating of “AV Preeminent” which is the highest possible rating in both legal ability and ethical standards by Martindale-Hubbell – a well-recognized legal resource. The RLG Legal Team also include attorneys Melissa J. Ulloa and the RLG Legal Support Team to bring you a dedicated, experienced and dynamic legal team to handle your legal needs.

We also assist clients in the areas of: Civil LitigationReal Estate LitigationResidential Purchase & SalesCommercial Acquisitions & SalesResidential Landlord-Tenant LitigationCommercial Landlord-Tenant LitigationShort Sales NegotiationsLoan ModificationsCriminal DefenseCivil Rights ClaimsFamily LawCorporate Work, and Labor & Employment Law.

Call us for a FREE consultation at (954) 369-1993. Se Habla Español.

Visit our firm website ReyesLegal.com and review our credentials.

We are located at 150 S Pine Island Rd, #210, Plantation, FL 33324.

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The Reyes Law Group BLOG is intended to provide information to firm clients, friends and potential clients about various legal related topics. Nothing in this BLOG should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this BLOG without seeking the advice of legal counsel.

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Written by Reyes Law Group