In previous blogs, we've touched on the concept of due
diligence during a real estate transaction. Specifically, we
reviewed the
due diligence obligations of a purchaser, as well as the legal
threshold of due diligence the law imposes on each and every
purchaser. Now, a recent decision from the Georgia Court of Appeals
highlights the importance of a purchaser's due diligence
obligation.
The case involves an owner of two parcels of
investment real estate who entered into a contract to sell both
parcels to one buyer. Many months before the contract, the city
posted notices of demolition for both properties based on failures
to comply with applicable zoning ordinances. The city also
identified the properties as being non-conforming with its
multi-family zoning ordinances. Before the demolition notices were
issued, the city cited the properties and passed resolutions
declaring the buildings unsafe.
