33 Guidelines for investing in real estate..................

Guideline #6:  Know what you are, and are not, buying.

There is a reason why purchase agreements have "due diligence" clauses.

Paragraph 3 (a) of  our standard contract contains the "boiler plate" list of contingencies - things we, and our clients, need to review, inspect, and generally be aware of before agreeing to buy.  Here is the list:

"......environmental site assessment, appraisal, wood destroying insect inspection, well and septic inspection, gas line inspection, zoning and building code compliance, soil and wetlands study, soil compaction analysis, lot line location, inspection of the structural condition of the improvements, mechanical systems review, roof inspection, flood plain impact, utility availability and capacity, curb cut and access availability, lease and rental review, and economic viability analysis."

The "boiler plate"  is a generalized list.  Specific properties may require additional inspections (for example, if one is buying wooded land, a timber consultant should be engaged), and obviously the entire list does not apply to all investments, but using those that do apply, and then adding the title insurance commitment (to identify easements and other potential restrictions to the use of the property) and a survey, and your general knowledge of the property now enables better decision making.

Sometimes general knowledge is not enough.  With the emergence of "shale" and fracking, a new awareness of, and respect for, mineral rights has emerged in our part of the world.  Just be aware that your normal title insurance policy contains an exclusion concerning mineral rights.  A much more detailed, and costly, title search is required.  Many land owners are truly unaware of the true status of their mineral rights.

Surprises are not generally considered a good thing in our business. Don't rely on the Seller's say so, or your gut instinct.  Hire competent professionals and have them inspect, inspect, inspect. As they say at Faber College, "Knowledge is Good."