Clive Burrows had a good article in Property Observer today. He wrote: “astute investors know that all properties have defects which if not identified during due diligence, can be money pits. There is a small window of opportunity during the brief due diligence period to identify these risks prior to purchase.
Identification of risks provides a bargaining opportunity to either negotiate a reduced price or request the risks be removed at the vendors cost. Risk avoidance can be achieved with meticulous due diligence, particularly in investigation of eight potential deal killers listed below.”
Clive lists the main risk areas as:
- Electrical Switchboard overload or fusion
- Fire and life safety non-compliance risk?
- Environmental site soil contamination?
- Structure and façade water proofing risks?
- Disabled access non-compliance risk?
- Air conditioning life cycle failure risk?
- Lack of mandatory certification to building codes?
Read the rest of the article at Property Observer; it makes for considered reading.
We see examples in all these areas, and so have some really good experience in handling any questions and subsequent negotiations. Why not drop us a line in the form below to find out what we can do for you to help you avoid any nasties.
Photo Credit: Photo Credit: Riv via Compfightcc.