What you need to know before you buy a real property ( 2)

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Due Diligence Checklist

Looking for a property to buy can be very stressful. It can be a bare land you need to develop or farm; an already developed residential, commercial, social or industrial property. The stress comes from signing agency agreements with Realtors or Estate Brokers, arranging for several viewings and inspections, negotiating prices and so on until you finally settle on one.

Among the processes to undertake before purchasing a property is thorough due diligence. Yes, I mean proper due diligence with all boxes checked. The simple checklist below is to assist you in undertaking proper due diligence.

  1. Identification of the Seller

 

  1. Obtain a photo valid ID card of the Vendor- Coloured copy with signature preferred

 

  1. Is the picture on the ID card the same as the Seller you are dealing with?                     Is his/her signature on the document the same as that on the ID card?
  1. Does he or she look the same age as stated on the ID?
  1. Do people know the Seller as the owner of the property? It is better to confirm from not less than three independent people. 
  1. Location Due Diligence 
  1. Who will be your neighbours?
  1. What will be the security situation in your neighbourhood?
  1. What is the noise situation in the area?
  1. Do you like the sanitation situation?
  1. What is the quality of air in the neighbourhood?
  1. Is it close, within or along a stream/ river course or any water body?
  1. Is the area flood prone or a potential flood region? Best to assess from the last 5- 8 years experiences.
  1. Is the property/ area/ adjoining properties prone to fire outbreak? Assess with past experiences.
  1. Does the use conform to the Planning scheme in the locality?
  1. What was the previous use of the property if any?
  1. Farm
  1. Landfill site/ Refuse dump
  • Cemetery
  1. Factory
  1. Others
  1. Are you happy with the transport situation and road networks in the area?
  1. Is electricity and water available in the area?
  1. What do the neighbours say about the area?
  1. Record of ownership 
  1. Conduct searches at the Lands Commission to uncover;
  1. the ownership record on the land;
  1. Any lien or encumbrance on the interest.
  1. Does the search report from the Lands Commission correspond to the

Seller’s title documents?

  1. Conduct a search at the District Assembly in which the property is situated for;
  1. Ownership records
  1. Record of payment of property rate by the Seller where applicable
  • Conformity of the current use or intended use, with the development scheme in the area.
  1. Conduct a search with the Local Authorities such as the Customary Land

Secretariat, chief’s palace, the family head or any appropriate body recognised by law.

  1. Is there any pending dispute or suit in respect of the property?
  1. If (e) is Yes, conduct a search at the appropriate court to understand the nature and status of the case.
  1. Where all such information is not available, other sources such as the following may be of help:
  1. Electricity Company of Ghana Limited
  1. Ghana Water Company Limited
  • Neighbours
  1. Structural Due Diligence 
  1. Have you gotten the opinion of a structural engineer on the soundness of the property?
  1. Have you considered the space you need?
  1. Can you remodel the property without it being affected structurally?a Is his/her signature on the document the same as that on the ID card?
  1. Does he or she look the same age as stated on the ID?
  1. Do people know the Seller as the owner of the property? It is better to confirm from not less than three independent people. 
  1. Location Due Diligence 
  1. Who will be your neighbours?
  1. What will be the security situation in your neighbourhood?
  1. What is the noise situation in the area?
  1. Do you like the sanitation situation?
  1. What is the quality of air in the neighbourhood?
  1. Is it close, within or along a stream/ river course or any water body?
  1. Is the area flood prone or a potential flood region? Best to assess from the last 5- 8 years experiences.
  1. Is the property/ area/ adjoining properties prone to fire outbreak? Assess with past experiences.
  1. Does the use conform to the Planning scheme in the locality?
  1. What was the previous use of the property if any?
  1. Farm
  1. Landfill site/ Refuse dump
  • Cemetery
  1. Factory
  1. Others
  1. Are you happy with the transport situation and road networks in the area?
  1. Is electricity and water available in the area?
  1. What do the neighbours say about the area?
  1. Record of ownership 
  1. Conduct searches at the Lands Commission to uncover;
  1. the ownership record on the land;
  1. Any lien or encumbrance on the interest.
  1. Does the search report from the Lands Commission correspond to the

Seller’s title documents?

  1. Conduct a search at the District Assembly in which the property is situated for;
  1. Ownership records
  1. Record of payment of property rate by the Seller where applicable
  • Conformity of the current use or intended use, with the development scheme in the area.
  1. Conduct a search with the Local Authorities such as the Customary Land

Secretariat, chief’s palace, the family head or any appropriate body recognised by law.

  1. Is there any pending dispute or suit in respect of the property?
  1. If (e) is Yes, conduct a search at the appropriate court to understand the nature and status of the case.
  1. Where all such information is not available, other sources such as the following may be of help:
  1. Electricity Company of Ghana Limited
  1. Ghana Water Company Limited
  • Neighbours
  1. Structural Due Diligence 
  1. Have you gotten the opinion of a structural engineer on the soundness of the property?
  1. Have you considered the space you need?
  1. Can you remodel the property without it being affected structurally?
  1. Is his/her signature on the document the same as that on the ID card?
  1. Does he or she look the same age as stated on the ID?
  1. Do people know the Seller as the owner of the property? It is better to confirm from not less than three independent people. 
  1. Location Due Diligence 
  1. Who will be your neighbours?
  1. What will be the security situation in your neighbourhood?
  1. What is the noise situation in the area?
  1. Do you like the sanitation situation?
  1. What is the quality of air in the neighbourhood?
  1. Is it close, within or along a stream/ river course or any water body?
  1. Is the area flood prone or a potential flood region? Best to assess from the last 5- 8 years experiences.
  1. Is the property/ area/ adjoining properties prone to fire outbreak? Assess with past experiences.
  1. Does the use conform to the Planning scheme in the locality?
  1. What was the previous use of the property if any?
  1. Farm
  1. Landfill site/ Refuse dump
  • Cemetery
  1. Factory
  1. Others
  1. Are you happy with the transport situation and road networks in the area?
  1. Is electricity and water available in the area?
  1. What do the neighbours say about the area?
  1. Record of ownership 
  1. Conduct searches at the Lands Commission to uncover;
  1. the ownership record on the land;
  1. Any lien or encumbrance on the interest.
  1. Does the search report from the Lands Commission correspond to the

Seller’s title documents?

  1. Conduct a search at the District Assembly in which the property is situated for;
  1. Ownership records
  1. Record of payment of property rate by the Seller where applicable
  • Conformity of the current use or intended use, with the development scheme in the area.
  1. Conduct a search with the Local Authorities such as the Customary Land

Secretariat, chief’s palace, the family head or any appropriate body recognised by law.

  1. Is there any pending dispute or suit in respect of the property?
  1. If (e) is Yes, conduct a search at the appropriate court to understand the nature and status of the case.
  1. Where all such information is not available, other sources such as the following may be of help:
  1. Electricity Company of Ghana Limited
  1. Ghana Water Company Limited
  • Neighbours
  1. Structural Due Diligence 
  1. Have you gotten the opinion of a structural engineer on the soundness of the property?
  1. Have you considered the space you need?
  1. Can you remodel the property without it being affected structurally?

The author is a Chartered valuation & Estate Surveyor Alternative Dispute Resolution Practitioner

[email protected]

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