Blog Layout

Understanding the Due Diligence Period in a Real Estate Sale
Rodriguez Law, P.L. • Dec 19, 2018

Let’s say you fall in love with a house at first sight. You’ve gone past crush, and this is love, which can come with all the potential pain of a human love story.


Because just like in love, a background check of sorts – at least asking someone who knows – is an important way to get to know if the date, or the house, is worth pursuing, or if you will find out something you really didn’t want to know.


That background check in home buying is due diligence, and it is the period of time immediately after the purchase offer is accepted and a sale contract to buy the house goes into play.

What is due diligence?

For a buyer, the period of due diligence gives a buyer a chance to get to better know the neighborhood and determine if they are a good fit (are the schools a match, do you enjoy the shopping, are there enough walking/biking trails, etc.).


Inspections will happen during due diligence – something buyers should be aware of – and if anything questionable is found, the seller may want to negotiate a different price to pay for whatever defect was uncovered upon deeper inspection.


There are always risk factors that accompany the purchase of big-ticket items such as homes, but due diligence can eliminate at least some of the potential surprises.

The best due diligence

There are a few tips that can make the time spent after making the offer less stressful.

  • Do due diligence prior to putting in an offer. If you like a house, do as much research as you can before putting in an offer. This not only makes surprises less likely, it also helps avoid the disappointment of finding a dream house, only to learn that mold could prevent you from buying the home.
  1. Know the market. Check to see what similar homes in the area are selling for so you’ll make a fair offer and you won’t be paying more than the market supports.
  2. Make sure that your financing is not only approved, but approved for the best price possible. You don’t want to be paying on your dream home forever. Eventually, even dream homes can become nightmares when the mortgage never seems to go away.
  3. Make sure you can afford it. If it is an investment property, be certain that the income that will be coming in from the property covers the costs; if it is your personal property, make sure too much of your income isn’t going to living expenses.
  • Go to the inspection. Knowing first-hand what needs fixing on your new property will make it easier to line up contractors and add up supplies at your local do-it-yourself store. Getting estimates before closing will let you be certain that your purchase is affordable.
  • Can you get insurance? Make sure that you don’t live in an area prone to fires, hurricanes, or other natural disasters that could prevent you from getting an affordable policy.
  • Is the HOA reasonable? Get to know someone from the homeowner’s association so that you can determine whether or not your HOA is one that will be worth the proposed expenses or not.
  • Records. Make sure that the title insurance is clear and that the land has been plotted out without any signs of potential problems. Neighbors won’t be fun anymore if a small parcel of land becomes something worth arguing about.

Contact a Florida Real Estate Fraud Attorney

A Florida real estate attorney can help you do your due diligence so that your dream home never becomes your nightmare. If you’re in the market for a new home, call Ricardo Rodriguez at Rodriguez Law at (305) 262-8226.

By Rodriguez Law, P.L. 19 May, 2019
If you have ever thought about NOT hiring an attorney for closing on a real estate purchase, unless you are paying cash, you are setting yourself up for a headache. Mortgages require more than a little bit of paperwork, enough so that you will be signing papers for at least an hour – with an attorney’s help. Without one? It’s a risk, and it may not be worth it, especially if you are buying a home. Having that massive amount of paperwork organized and ready for your signature is a great benefit, but it is hardly the only good thing about having an attorney who has your back during closing. Here’s why:
By Rodriguez Law, P.L. 19 Apr, 2019
If you’re thinking about buying, selling, or refinancing your home in order to take advantage of a better interest rate, the appraised value of your property is an important number. An appraisal will help determine how much you will likely be able to get for your home if you sell, or in the case of an refi, which usually only allows a portion of the property’s value to be included in a new loan, will determine how much a lender will be willing to loan you, since the loan received from a refi usually only includes a percentage of the home’s value. Appraisers are working on behalf of the lender and will assess the value of your property based on the value of similar properties in your neighborhood. Comparable properties usually must be located within a few miles of the property being assessed, must be of similar square footage, and should be built within 10 years or so of the property in question.
By Rodriguez Law, P.L. 19 Mar, 2019
Buying a home or property is a major investment, often the biggest one of your life, and taking the right steps to ensure that the home is free from any encumbrances before you make the purchase will protect you and allow you to enjoy your new asset for years to come. Some of the most important things to think about include hiring an inspector to check for safety issues, making sure the property is priced fairly compared to other homes in the neighborhood, and doing a title search to determine that there are no limits on how you might use your land or if someone else’s name is attached to the home or property. A title search – which involves retrieving the court documents associated with the home or land, such as liens or easements – can prevent you from buying your dream home, only to find out that you have suddenly become the owner of someone else’s debt along with the home. While it is possible to determine whether or not your home is free from liens or other constraints on your own by going over courthouse files or visiting the assessor’s office in the county where the property is located to view records, title issues can be complicated, and hiring an experienced real estate attorney will not only save you a lot of legwork, but will also make sure that you don’t miss something on your own by ensuring that your home is free from legal issues. Title searches essentially determine whether or not the home you are buying is free from liens or can be legally sold by the person selling the home, in case ownership is disputed. Here are eight important things that a title search might uncover:
Show More
Share by: