Due Diligence

Hi there,
I would like to thank Steve for his resource, “Buyer Beware” and thoroughly recommend it as one of the most useful tools I have.

I am in the process of purchasing a C/F property in NZ. 3 Br brick house =1 br flat. Total rent pw + $285 and purchase price $135,000 – Yes there are still places where 11 second solution still works.

Although I am familiar with area, I asked valuer to advise whether building inspection was necessary. House was good but flat was below standard and had been added on to existing double gge without a building permit. (something you need to watch out for in NZ)
As I had made offer subject to satisfactory building inspection, I forwarded this to agent who consulted the vendors.
They were shocked as they had bought property 3 years ago without doing due diligence and had no idea flat was not permitted.
The result is they have had a council inspector out, have a list of remedial items to fix at vendors expence, and purchase will go ahead with flat approved for rental by local council.

Thanks again Steve and crew for your advice.