What Happens When You Buy a House Without Due Diligence?

Written by Posted On Saturday, 06 March 2021 06:32

Pandemic House Buy without Performing Due Diligence

Purchasing a home is one of the biggest decisions that many make considering the purchase price. Unlike buying goods at a store, houses are not returnable. As a result, one has many factors to consider before making a home purchase—and should not simply rush into such a purchase.

The Role of the Pandemic

Yet, this past year, millions of Americans rushed into purchasing their homes. Why? The pandemic created a housing frenzy, where people exited cities in search of more space, especially since many were and are able to work from home. This exodus, in turn, created bidding wars as housing inventory dropped as many homeowners were hesitant to list their properties during the pandemic. The result: Buyers had little to choose from and began to waive inspections or skip typical due diligence before purchasing a home.

Insurance Issues

Home inspection report

Aside from purchasing homes without a professional inspection, insurance companies such as Chubb have seen non-weather related losses increase in frequency and severity due to hasty home purchases. Home purchasers are moving to places that they are unfamiliar and where they do not necessarily understand potential risks associated with a particular geographic location. Good examples may be floods caused by frozen pipes or air conditioners that freeze over. Alternatively, people overlook known risks in order to purchase homes before someone else does. Again, the notion of supply and demand coupled with the challenges that the pandemic has caused has led purchasers to take risks that they had not done previously.

Buyer Beware

Most resales are sold “as is” which means that it is incumbent upon a potential purchaser to make sure that inspections are done. Without doing the necessary due diligence, you literally agree to take the property as it is—even if there may be potential liens or mold. Your home is one of the most expensive purchases that you will make and taking your time to evaluate the condition of the property may be essential to that investment. Real estate business and law help secure the title of the property and helps give evidence of events in the history by title search or property title search.

Should you need assistance in purchasing, or have a legal question about a potential purchase, our team at Oppenheim Law is here for you. Our sister company, Weston Title & Escrow, Inc., is also able to assist you with your closing.

Roy Oppenheim

From the Trenches

Originally posted at: https://westontitle.com/2021/02/what-happens-when-you-buy-a-house-without-due-diligence/

Rate this item
(0 votes)
Roy Oppenheim

From Wall Street to Main Street, Roy Oppenheim is a successful serial entrepreneur and attorney focusing on Florida real estate, foreclosure defense, loss mitigation and Internet ventures.

He founded Oppenheim Law in 1989 with his wife Ellen Pilelsky and uniquely positioned the Firm as one of Florida’s leading boutique law firms in Weston, Florida.

Serving national, international, and local clients, Mr. Oppenheim has the highest rating (A-V) conferred by Martindale Hubbell Law Directory, the most respected directory of lawyers and law firms in the U.S.

In 1989, Mr. Oppenheim also co-founded and served as general counsel to ShopSmart Corp., the company that originated and owned the GNC Gold Card Program, a program that continues to this day and was one of the first cross-promotional programs of its kind.

In addition, in 1994, he co-founded Weston Title & Escrow, the oldest title company in Weston, Florida, and he currently serves as its Vice President. In 1999, Mr. Oppenheim served a one-year term on the board of directors for Catalina Lighting, a publicly traded company on the New York Stock Exchange.

Growing up in the Bronx, Mr. Oppenheim learned to be focused on success and driven to always persevere for opportunity.

In 2009, he started the South Florida Law Blog, which was voted the best business and technology blog by the South Florida Sun-Sentinel. He also serves as an expert witness on title industry practices.

Mr. Oppenheim has also co-authored two law review articles, Deconstructing The Black Magic of Securitized Trusts, published in the Stetson University Law Review’s Spring 2012 Edition, and The Emperor’s New Clothes, published in the William & Mary Business Law Review Volume 6.

Today, Mr. Oppenheim is a sought-after legal expert on issues relating to the real estate crisis and beyond. In addition to his own blog, he also has been a contributor to Yahoo! Homes, and featured on HuffPost Live, FOX News, and Lifetime TV. In addition he has been quoted in prominent national publications, including USA Today, The New York Times and Huffington Post, among others. Mr. Oppenheim also understands the power of social media, and can be found on a variety of social media platforms.

Mr. Oppenheim also speaks fluent German.

Admissions

  • Florida Bar, 1987; Member of the Real Property Probate and Trust Law Section
  • New York Bar, 1987; United States District for the Southern and Eastern Districts of New York, 1987
  • U.S. District Court, Southern and Middle Districts of Florida, 1993

Education

  • Princeton University, A.B., cum laude, 1982
  • Northwestern University School of Law, J.D., 1986
    • Member of the Northwestern University Law Review
    • Member of the National Moot Court Team

Original source:  https://www.oppenheimlaw.com/who-we-are/meet-our-team/roy-d-oppenheim-esq/ 

https://www.oppenheimlaw.com

Search by State:

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.