Legal due diligence and real estate pricing are two distinct but related processes that play crucial roles in real estate transactions.
Legal Due Diligence: Legal due diligence involves a thorough investigation of the invisible legal risks, liabilities, and issues of a property. TIER® and TIER Plus® are legal due diligence solutions that deliver legal opinions regarding invisible legal risks located in a parcel’s public document record.
Examples of legal risks analyzed are chain of title issues, outstanding liens, pending litigation, zoning violations, land use restrictions, and other issues affecting the property’s use and value.
Real Estate Pricing: A property can only be priced properly when invisible legal risks are understood and accounted for. Accurate, data-based pricing of a property is crucial to obtaining bank financing and avoids other problems as well.
Buyers and Sellers use TIER and TIER Plus during the transaction:
- Buyer Buy / No-Buy decision: Understanding TIER and TIER Plus legal risks helps buyers know if this parcel is the best use of precious capital. If unanticipated legal risks are discovered during due diligence, these risks can be quantified and concessions negotiated.
- Seller List-Price decision: Understanding TIER and TIER Plus legal risks help sellers make data-based decisions that substantiate their list price. When the TIER or TIER Plus is made available to potential buyers, your property stands out in a competitive marketplace, quiets objections, and substantiates your list price.