What A REALTOR Does

When purchasing a home, the Utah Real Estate Purchase Contract allows you, the home buyer, a due diligence period.

What does due diligence mean? Due diligence is a time period alloted by the contract that gives you time to make sure the home you are purchasing is in satisfactory living condition. Basically, due diligence gives you a time period that both home buyer and seller agree to for the buyer to investigate the property.

Utah Home Buyer Due Diligence Checklist

1. Building Code And Zoning Compliance - You can obtain these records from the community development department in Logan Utah.

2. Rental Of Property - You can find out if the property you are buying is eligible to be a rental property from the same department. You will also have to apply for a landlords license and attend an 8 hour landlord class if you haven’t already.  More information on Logan UT Landlord Licensing.

3. Hazardous Waste And Toxic Substances – It’s a good idea to test for hazardous substance’s on the property such as radon, meth residue, asbestos, and lead based paint. You can check for these substances by asking your real estate agent who they recommend for the job. You should always use a professional when testing, and always use professional services to clean up any Toxic substances.

4. Surveying And Staking – It’s the buyers responsibility to ensure the property lines are represented truthfully in the contract.

5. Home Warranty Plans – A home warranty will cover certain appliances and components of the property after closing. A home warranty should be bought with most home purchases.

6. Flood Zone And Insurance – If the property is located in a flood zone the lender will require flood insurance in order to approve your loan.

7. Home Owners Insurance – In order to obtain a loan you will have to have home owners insurance. This is can be calculated into your house payment. Talk to your lender to determine their requirements.

8. Title Issues/Homeowner’s Association – You should get a title report, review any CC&R’s, consult with the Homeowners Association (HOA) about anything related to your property such as budgets, payments, meetings, your say in the HOA’s rules, and financial statements.

9. Physical Condition – Making sure the home is in livable condition is your responsibility as a buyer. You’ll need to hire professionals to inspect the property. As a buyer you should never rely on the seller and your real estate agent to determine the condition of a property. This should be left to inspectors, electricians, and contractors or any other professional as needed.

10. Square Footage/Acreage – If you’re worried about the square footage or acreage of a property, you should hire the correct professionals to verify the information provided by the seller. You shouldn’t rely on a seller’s accuracy of these claims. An appraiser will usually be pretty close to the exact square footage of a home, and you should hire a surveyor to check acreage.

11. Utility Services – As a buyer you need to verify utility information, location of sewer lines, natural gas, cable TV, electrical lines, and telephone lines. Does the property have a septic tank and does it need to pumped? Call all utility companies and make sure all fees are paid and up to date.

12. Water – Talk to the water service providers applicable to your area, the type of water the property uses, and the applicable fees, maintenance costs, and any connection fees related to the property. Water laws can also prevent you from developing a property, and it’s important to talk to the correct professionals and authorities regarding anything water related. If the property has well water, be sure to know the regulations imposed on the well, and get the water tested by a professional.

13. Geologic Conditions – Consult with the proper professionals regarding the properties soil and terrain stability, the existence of wetlands,  drainage problems, and any building or zoning requirements the property has.

14. Mold – You are responsible for mold detection, and you can’t rely on a seller for this information. If you feel the property may have mold, hire the appropriate professionals to determine if the property has mold.

15. Housing Compliance – It is your responsibility as a buyer to consult with the appropriate parties regarding schools, proximity of law enforcement, crime statistics; proximity to industrial, commercial, or agricultural activities; fire protection, other governmental services, transportation, new construction and development, noise and odor from any source or other nuisances, hazards, or circumstances.  Basically, you are responsible to determine if the home has everything you expect it to have.

16. Property Taxes – You’re advised to consult directly with local county assessor’s to determine the property tax laws, whether or not the property is or may be greenbelt, or any other governmental fees and restrictions related to the  taxing of the property.

17. Income Tax/Legal Consequences – Buying real estate has legal and income tax consequences. A buyer should consult with an attorney and accountant to determine how purchasing the property will affect you legally and financially. Realtors are not accountants or attorney’s, and can not give you legal or financial advice.

If this seems like a lot of work, you’re absolutely right. Your due diligence period is extremely important when purchasing a home. An experienced Realtor can help you find the correct professionals and authorities to help you complete your due diligence checklist thoroughly. There can be so many problems with a home, and it’s extremely important to check everything on your own and not rely on a seller or seller’s agent for information.

All information here is for the purpose of education, and I do not claim legal rights to this information. This is not legal advice, please consult with the proper professionals regarding your home purchase. Information was summarized and gathered from Buyer Due Diligence Checklist provided by The Utah Association of Realtors.

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