BUYER DUE DILIGENCE CHECKLIST
This is a legally binding document. If not understood, consult an attorney.
THIS BUYER DUE DILIGENCE CHECKLIST is provided by (the "Company"), including (the "Agent") to (the
"Buyer") in connection with the purchase of any property, including (if known) the property located in Sugar House
Utah.
(the "Property").
NOTICE FROM COMPANY
Buyer is advised that the Company and its agents are trained in the marketing of real estate. Neither the
Company nor its agents are trained or licensed to provide Buyer with professional advice regarding the physical
condition of any property or regarding legal or tax matters. The Company and its agents strongly recommend that
in connection with any offer to acquire any property, Buyer retain the professional services of legal and/or tax
advisors, property inspectors, surveyors, and other professionals to satisfy Buyer as to any and all aspects of the
physical and legal condition of the property. BUYER IS ADVISED NOT TO RELY ON THE COMPANY, OR ON ANY
SALT LAKE CITY REAL ESTATE AGENTS OF THE COMPANY, FOR A DETERMINATION REGARDING THE
PHYSICAL OR LEGAL CONDITION OF THE PROPERTY. The following is a general listing of issues that Buyer
should consider in evaluating any property. This is not intended to be a comprehensive list of all issues that may
be relevant in Buyer's evaluation of a specific property, including any property listed above. This document is,
however, intended to direct Buyer's attention to a number of issues that are commonly considered important in the
evaluation of any property.
1. BUILDING CODE/ZONING COMPLIANCE: Buyer is advised to consult with local zoning officials to assure that
Buyer's intended use of the Property (including, but not limited to, rental and business uses, construction of new
improvements and/or the remodel of existing improvements) will comply with local zoning requirements and with
any recorded restrictive covenants and conditions. Buyer should determine whether a certificate of occupancy
has been issued for the Property and if such certificate is available for inspection. Buyer is also advised to make
inquiry at the local building department to determine if building permits and final inspections were obtained for any
remodel work at the Property, if applicable. Buyer acknowledges that the Company should not be relied upon for
any determination as to any past, present or future building code or zoning restrictions or violations, or as to the
suitability of the Property for Buyer's intended use.
2. HAZARDOUS WASTE AND TOXIC SUBSTANCES: Buyer is advised to consult with appropriate professionals
regarding the possible existence of hazardous wastes and toxic substances on the Property, including, but not
limited to, asbestos, radon gas, lead and lead-based paint. Buyer is advised that a variety of federal laws can
place strict liability on property owners for hazardous waste management and cleanup of hazardous substances.
Buyer is advised of Buyer's obligation to make appropriate inquiries ("due diligence") into past uses of the
Property to ascertain the possible existence of hazardous wastes or toxic substances. Buyer acknowledges that
the Company should not be relied upon for any determination as to the existence of any hazardous wastes or
toxic substances.
3. SURVEYING AND STAKING: Buyer is advised that without an accurate survey of the Property, Buyer cannot be
certain as to the boundaries of the Property, or that any improvements on the Property are not encroaching upon
adjoining parcels of property, or that improvements located on adjoining parcels of property do not encroach onto
the Property. Walls and fences may not correspond with legal boundary lines for the Property. Buyer
acknowledges that the Company should not be relied upon for any determination as to the boundaries of the
Property or of any encroachments within or over the actual boundaries of the Property.
4. HOME WARRANTY PLANS: Buyer acknowledges that Buyer has been advised by the Company of the
availability of Home Warranty Plans which provide limited warranties for certain home appliances and certain
components of the Property after Closing.
5. FLOOD ZONE AND INSURANCE: If the Property is located in a "Flood Zone" as set forth on the H.U.D. "Special
Flood Zone Area" map, the mortgage lender may require that Buyer obtain and pay for flood insurance on the
Property and its improvements.
6. HOMEOWNERS INSURANCE: Buyer is advised that certain properties, due to location, condition, and/or claims
history, may be uninsurable, or may only be insurable at an increased cost. Buyer is also advised that Buyer's
credit, insurance claims history, and other issues (such as specific kinds of pets), may be factors in determining
the availability and cost of homeowners insurance. Buyer is advised to consult directly with insurance companies
of Buyer's choice regarding the availability and costs of homeowner's insurance for the Property.
7. TITLE ISSUES/HOMEOWNER'S ASSOCIATION: Buyer is advised that title insurance companies offer a variety
of title insurance policies that provide different levels of coverage. Buyer is advised to carefully review with legal
counsel and with the title insurer: (a) the available title insurance coverage; (b) the contents of any Commitment
for Title Insurance on the Property; and (c) the contents of all documents affecting the Property that are a matter
of public record, including, but not limited to, any restrictive covenants (CC&R's). If the Property is part of a
Condominium or other Homeowners Association ("HOA"), Buyer is advised to consult directly with the HOA
regarding all HOA matters that may affect the Property, including, but not limited to, existing and proposed
budgets, financial statements, present and proposed assessments, dues, fees, reserve accounts, rules, and
meeting minutes.
8. PHYSICAL CONDITION: Buyer is advised to consult with appropriate professionals regarding all physical
aspects of the Property, including, but not limited to: built-in appliances; plumbing fixtures, lines, fittings and
systems; heating, air conditioning systems and components; electrical wiring, systems, appliances and
components; foundation; roof; structure; exterior surfaces (including stucco), exterior features and equipment;
pool/spa systems and components; any diseased trees or other landscaping; past use of the Property for storage
or manufacturing of any illegal substances including, methamphetamines; and moisture seepage and damage
from roof, foundation or windows. Buyer is advised not to rely on seller, the Company, or any agents of the
Company for a determination regarding the physical condition of the Property.
9. SQUARE FOOTAGE/ACREAGE: If the square footage or acreage of the Property is of material concern to
Buyer, Buyer is advised to verify the square footage or acreage through any independent sources or means
deemed appropriate by Buyer. In the event the Company provides any numerical statements regarding these
items, such statements are approximations only. Buyer is advised not to rely on seller, the Company, or any
agents of the Company for a determination regarding the square footage or acreage of the Property.
10. UTILITY SERVICES: Buyer is advised to consult with appropriate professionals regarding the location of utility
service lines and the availability and cost of all utility services for the Property including, but not limited to, sewer,
natural gas, electricity, telephone, and cable TV. Buyer is advised that the Property may not be connected to
public water and/or public sewer, and applicable fees may not have been paid. Septic tanks may need to be
pumped. Leach fields may need to be inspected.
11. WATER: Buyer is advised to consult with the water service provider for the Property and with other
appropriate professionals regarding the source, quality, and availability of water for the Property; and regarding
all applicable fees and costs (including, without limitation, connection fees, stand-by fees and service fees), use
and regulatory restrictions, and ownership of water rights and water system. Depending upon the location of the
Property, the water service provider, and climate conditions, water service to the Property may be interrupted. A
well and well system may require inspection. Buyer is further advised that, depending upon the location of the
Property, State and local laws may impose specific requirements regarding the source, the capacity, and the
quality of water that will service new plat or building permit applications. Such water-related laws may directly
impact Buyer's ability to develop the Property and/or obtain a building permit for any improvements to the
Property. Buyer is advised to consult directly with applicable State and local authorities, and with legal counsel,
regarding the content and potential affect of such water-related laws.
12. GEOLOGIC CONDITIONS: Buyer is advised to consult with appropriate professionals regarding possible
geologic conditions at or near the Property. Such geologic conditions may include, but are not limited to, soil and
terrain stability, the existence of wetlands, drainage problems, and any building and/or zoning requirements
relating to such geologic conditions.
13. MOLD: Buyer is advised to consult with appropriate professionals to determine the possible existence of mold
in the Property. Water leaks and water damage to the Property may result in mold that may have adverse health
affects. Additional information regarding mold is available through the EPA at: www.epa.gov.
14. HOUSING COMPLIANCE: Buyer is advised to consult with appropriate professionals regarding neighborhood
or property conditions including, but not limited to: schools; proximity and adequacy of law enforcement; proximity
to commercial, industrial, or agricultural activities; crime statistics; fire protection; other governmental services;
existing and proposed transportation; construction and development; noise or odor from any source; and other
nuisances, hazards, or circumstances. All properties will be shown without regard to race, color, religion, sex,
national origin, handicap or familial status and any other requirements of federal and state fair housing laws.
15. PROPERTY TAXES: Buyer is also advised that, depending upon present use, the Property may be taxed as
"Greenbelt". A purchase of the Property may change the Greenbelt status and the amount of property taxes
assessed by the County. Such change in Greenbelt status may also result in liability for roll-back taxes. If Buyer
has any questions regarding County property tax requirements, Buyer is advised to consult directly with the
County Assessor's Office.
16. INCOME TAX/LEGAL CONSEQUENCES: Buyer is advised that this transaction has tax and legal
consequences. Buyer is advised to consult with appropriate legal and tax advisors regarding this transaction.
RECEIPT AND ACKNOWLEDGEMENT OF BUYER
I have carefully reviewed this BUYER DUE DILIGENCE CHECKLIST. I understand my right and the
recommendation of the Company to consult with appropriate experts and professionals prior to, or as part of an
offer to purchase any property. I FURTHER UNDERSTAND THAT I HAVE THE RIGHT TO INCLUDE ANY OR ALL
OF THE ABOVE ISSUES AS A CONDITION OF MY OFFER TO PURCHASE ANY PROPERTY.
Buyer’s Signatures and Dates shall be completed by hand on printed form.
| Kirk Millson Plumb & Co. |
| 801.419.8912 |
| Sugar House Buyer Checklist |
| Home Why Kirk Millson? Kirk's Listings The Neighborhoods Old House Styles Salt Lake City Schools Buyer Tools - MLS Seller Tools Area Attractions Area Businesses Utah Economy Land in Utah Sugar House Weather Sitemap Other Salt Lake Valley Communities Communities Near Sugar House Kirk Millson Kirk@SugarHouseUtah.com 801-419-8912 Plumb & Co. Realtors 1001 E. 2100 South Salt Lake City, Utah 84106 ©2007 Kirk Millson |
