The Legal System Made Easy

A Complete Guide on Due Diligence in Convenyancing

A conveyancer's first task is to conduct due diligence to ensure you will not incur legal and financial liabilities once you purchase the property. So, what does due diligence comprise? Read the extract below to get a better understanding.

Property Title

The conveyancer will conduct a title search to ascertain the title is registered under the owner's name. Further, they will check the type of title. For instance, while a freehold title allows you to use the land as you please, a leasehold, company, strata and retirement village title might restrict land use. It may prohibit you from altering the building design or keeping pets. Your conveyancer will explain these bylaws to ensure you have an accurate understanding of what and what not to do on the property.


The conveyancer will assess various licenses to ensure the building meets the building code. For instance, they will need a certificate of occupation from the certifier proving the builder meet the required standards. They may also require permits for extension works and a swimming pool fence certificate.

Zoning Regulations

The certifier will examine zoning regulations and advice on the following:

  1. The allowed developments. For instance, you can build a flat or business complex if the area is zoned as mixed-use.
  2. The location of utility lines such as power, electricity and gas.
  3. The height and size of buildings allowed in the area.
  4. If the area is marked as a heritage and historic sector, residents may have to preserve specific features of their homes. For instance, a balcony facing the sea or the type of fence. 

The conveyancer will also consult with the lands office to determine if there are planned developments in the area. For instance, the property may appreciate if the government builds a road or hospital close to the property. 

Pre-Purchase Inspection

The pre-purchase building inspection aims to access the condition of various features of the property. The inspector examines the structural integrity of the home, the presence of pests, the state of drainage systems, the possibility of land contamination, the condition of internal fixtures and the susceptibility of the property to natural disasters such as floods.

You can use the inspection report to request the seller for a price cut or conduct renovations. If the house has severe defects, you have the right to terminate the contract.

Due diligence is a vital aspect of the property purchase process. It involves a building inspection and an evaluation of the property title, zoning regulations and building permits.

For more information, contact a local conveyancing service.