Posted on Friday, February 23rd, 2024

modern family home under a magnifying glassDue diligence in real estate in Florida is a crucial phase where buyers conduct thorough investigations of the property they intend to purchase. During this period, buyers carry out detailed inspections of the property, including physical, financial, and legal checks. That is why having a real estate lawyer in Florida is critical.

Typically, the due diligence period in Florida lasts ten days from the binding date of the contract. The binding date is when the last party signs the contract, and it becomes legally binding. However, the duration can be negotiated and specified differently in the contract.

Scope of Due Diligence

The process of due diligence in Florida real estate involves several vital steps to ensure that a buyer is making a well-informed decision. This process varies slightly between residential and commercial properties, but here is a general overview:

  • Physical Inspection: This is an examination of the physical condition of the property. For residential properties, it includes checking the structure, plumbing, electrical systems, and any signs of pest infestation. In commercial properties, it may also include environmental assessments, zoning compliance, and suitability for intended business use.
  • Title Review: This involves ensuring that the title to the property is clear of any liens, encumbrances, or other legal issues that could affect ownership.
  • Review of Seller’s Disclosures: Florida law requires sellers to disclose known material defects in the property. It is crucial to review these disclosures carefully, especially for residential properties.
  • Neighborhood and Zoning Checks: Understanding the neighborhood, future development plans, and zoning laws is important. This helps assess potential future changes that could impact the property’s value or use.
  • Legal Review: For both residential and commercial properties, consulting with a real estate lawyer in Florida can be beneficial. They can help review the purchase agreement and ensure all legal aspects of the transaction are properly addressed.
  • Financial Due Diligence: This includes reviewing all costs associated with the property, such as taxes, insurance, and homeowner association fees, if applicable.
  • Environmental Assessment: If there’s a suspicion of contamination or past industrial use, an environmental assessment might be necessary.
  • Appraisal: Getting a professional appraisal provides an unbiased estimate of the property’s market value.

For commercial properties, due to the principle of caveat emptor (buyer beware), the due diligence is more extensive and rigorous. This is particularly important since commercial transaction buyers are deemed sophisticated and bear a greater responsibility for their due diligence.

Perform Due Diligence With a Real Estate Lawyer in Florida

Having an Orlando, FL, real estate lawyer when performing due diligence in real estate in Florida is highly beneficial for several reasons:

  • Real estate laws can vary significantly from one location to another. A real estate lawyer in Florida has the knowledge and experience with local laws, regulations, and practices. This knowledge is crucial for navigating complex legal landscapes, ensuring compliance, and identifying any local legal issues that might affect the property.
  • Real estate transactions involve a myriad of legal documents, including contracts, deeds, and disclosure forms. An experienced Orlando, FL real estate lawyer can review these documents to ensure they are fair, accurate, and in the best interest of their client.
  • If any disputes or legal issues arise during the transaction, a real estate lawyer can provide legal representation and advice on the best course of action. This includes issues with sellers, brokers, or other parties involved in the transaction.

Knowing that a real estate lawyer in Florida is handling the complex legal aspects of a real estate transaction can provide significant peace of mind and allow you to focus on other aspects of the purchase. Let Nishad Khan, P.L. offer the legal assistance you need to perform your due diligence in real estate; contact us today for a consultation.