An important element of a real estate purchase is the due diligence during the inspection regarding the property. You’ve seen the professional pictures on line and visited the meticulously maintained house with the scent of freshly baked cookies. What’s not to love Now it’s time to really find out what’s really happening. The due diligence during the inspection period is a critical time to evaluate the property and surrounding area of most likely the largest purchase you’ll ever make.
Tools and Resources Available to The Buyer
First of all, Arizona law requires sellers to disclose important material facts about the property. The Seller Property Disclosure Statement assists them with this legal obligation. In addition the AAR contract requires a 5 year insurance claims history or for the amount of time they’ve owned the house if less than 5 years. The buyer should receive these very early in the inspection period.
The Buyer Advisory is another resource that informs the buyer what criteria may be important in their consideration of a home and the surrounding area as well as documents they can expect to see during the transaction. For example, it will direct a buyer to websites that contain information regarding crime statistics, school profiles, water and soil issues and the sex offender registry.
On site inspections are another critical part of the due diligence. An experienced home inspector will be able to alert a buyer to potentially significant issues about a property that the buyer will need to consider. The more important items on the inspection reports are typically those that a buyer requests a seller to correct or repair. Be sure not to wait until the last day of the inspection period to perform the inspections!
The due diligence during the inspection period is the buyer’s opportunity to satisfy the inspection contingency. At the end of the inspection period, the buyer will have the option to proceed with the transaction by accepting the property “as-is” or requesting that seller address certain items, or cancelling the contract. To understand the other contingencies in the contract, watch the video below.
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