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What Does It Mean for a Buyer to Perform a Due Diligence

If you’ve never bought in the property market before there will be plenty of fresh terms, you’ll be exposed to. Due diligence is one of them.  Due diligence is a checklist to highlight any issues or obligations that may affect your residential property purchase.
It covers many items; we’ll mention just a handful that you can expect to come across.

Buyers rights

Request a section 32 vendor statement before you sign any contract. This document will provide you detailed information on the land from the seller, which will allow you to consider all the facts before entering into an agreement. A section 32 usually has the title document, covenants, easements, zoning certificate, outstanding debts and any restrictions on the land.

Check Land Boundaries

Make sure the dimensions that are listed in the section 32 document matches the size of the actual property being purchased.

Utilities and Essential Services

Are utilities and essential services, like water, sewerage, electricity and gas, telephone and NBN connected? Will these services be completed before you move in. Which services will you need to pay for to get them connected.

Flood and Fire Risk

Investigate the area you are buying in and if it is at risk of fire or flooding. Consider how this will affect you as the buyer and if there will be build implications or increased insurance premiums.

There are a number of other items that should be checked off when conducting the due diligence process. These can be found at Consumer Affairs Victoria. View the full checklist here