Before the purchase your next home, file a Government Records Access and Management Act (GRAMA) request with the city or county that acts as the “land use authority.” GRAMA forms are typically available online. Within ten days you should receive a response which could reveal hidden issues, including:
- Red tags or other documents indicating issues with zoning;
- City or County activity affecting the property such as special assessments;
- Enforcement letters or orders; or
- Communications between staff discussing the property.
Reviewing land use records also helps ensure compliance with local laws, which is essential for avoiding legal issues and making sure the property can be used as intended.
In one case I handled, a buyer discovered—after closing—that the city had warned the seller years earlier that a backyard assessory dwelling unit (ADU) was not legal. A GRAMA request could have revealed this critical information.
Introduction to Land Use Records
Land use records are an essential part of the due diligence process in real estate transactions. These records offer valuable insights into a property’s history, such as previous uses, zoning violations, and any environmental or legal issues that could impact your investment. By reviewing land use records, buyers and sellers can identify potential risks early and make informed decisions about whether a property aligns with their goals. In the local real estate market, these records are typically available through the county assessor’s office or other government agencies. Working with a real estate professional—such as a real estate agent or real estate lawyer—ensures you obtain all the information needed to navigate the diligence process effectively and avoid costly surprises down the road.
Understanding the Due Diligence Period
The due diligence period is a crucial phase in any property transaction, giving buyers and sellers a set timeframe—often 30 to 90 days as outlined in the sale agreement—to complete essential tasks. During this diligence period, buyers should conduct property inspections, order title searches, and review financial records to uncover any hidden issues. Sellers, in turn, must provide access and documentation as needed. This process is vital to ensure that the transaction proceeds smoothly and that both parties are fully aware of the property’s condition and any potential risks. Collaborating with a real estate agent and a real estate attorney during the due diligence period helps ensure that all necessary steps are completed, protecting your interests and supporting a successful real estate transaction.
Check the Utah State Construction Registry (SCR)
If the home has been recently remodeled or improved, visit the Utah State Construction Registry (SCR) and search the property address. Contractors, subcontractors, and suppliers file Preliminary Notices here to preserve their right to record a mechanic’s lien if they’re not paid. If a notice exists and payment hasn’t been confirmed, you could inherit a lien risk after closing.
Review the Seller’s Property Condition Disclosures Carefully
Utah law requires sellers to provide disclosures about important information regarding the property’s legal and physical condition. Focus on questions like:
- Are there any known zoning violations or nonconforming uses?
- Are all additions or structures on the property permitted?
- What is the source of the listed square footage? (Compare this figure to the county assessor’s records, as discussed below.)
Never assume the seller is always accurate. If any other documents are discussed, including appraisals, home warranties, soils reports, etc., request them in writing and if not provided, demand them. You must be exercise diligence before making a final decision.
Verify Every Utility Service to the Property
Confirm that each of the following utilities is properly connected, permitted, and separately metered (if applicable):
- Water
- Sewer
- Electricity
- Gas
- Internet
- Garbage collection
If the property includes an ADU or in-law suite, determine whether it has separate utility meters—and whether that separate service implies a legal second dwelling or merely a convenience. A utility hookup does not guarantee zoning compliance.
Pull County Assessor Records for Property Taxes
Visit your county assessor’s online portal and pull the last few real estate tax bills; study them closely to determine the assessed value (and give a rough confirmation of the property’s value) as well as the actual taxes. The due diligence process should also include reviewing assessor’s documentation related to:
- The square footage of the parcel;
- All the improvements referenced;
- Parcel maps; and
- Building sketches and number of structures.
Be cautious: discrepancies between MLS listings and assessor data are common. For example, if the MLS says the property is 2,400 sq. ft. but the county shows 1,600 sq. ft., that’s a red flag. If a structure is not reflected in assessor records, it may be unpermitted or illegal.
Reviewing assessor records alongside comparable properties in the area can help you better assess the property’s market value and identify discrepancies.
Check the Zoning Map—And Your Neighbors’ Zoning Too
Another item on any due diligence checklist is confirming the property’s is zoning for (e.g., single-family, multi-family, agricultural), but also what’s next door. Review all the data available and consider:
- Minimum lot sizes required for certain uses;
- Whether nearby lots are zoned for commercial or industrial uses; and
- Whether any major construction is planned in the area.
Don’t rely solely on what a real estate agent says. Phone the land use authority or even better visit their office, tell them your conducting due diligence, discuss the local laws, any planned construction, or other issues affecting the property or the neighborhood surrounding it. Check the official zoning map on the municipality’s website or call the zoning office directly.
Identify Local Schools and District Boundaries
School district boundaries affect both quality of life and resale value. Visit the local school district’s website to verify:
- Which elementary, middle, and high school zones apply;
- Whether the property is in a “choice zone” or restricted to certain schools; and,
- Enrollment capacity and performance ratings.
The Role of a Real Estate Agent
A real estate agent plays a crucial role in guiding buyers and sellers through the due diligence process. With in-depth knowledge of the local real estate market, a skilled agent can provide valuable insights into property values, zoning laws, and potential risks that may affect your investment. Real estate agents help coordinate property inspections, facilitate negotiations, and ensure that the terms of the sale agreement protect your interests.
Their expertise is especially important when navigating complex transactions or competitive markets. By partnering with an experienced real estate agent, you gain a trusted advocate who helps you make informed decisions, negotiate effectively, and complete your property transaction with confidence.
Additional Recommended Steps
- Obtain a Survey if you can afford it: Especially if fences or sheds are near the lot line.
- Hire a Home Inspector: Schedule a property inspection. The home inspection should occur as early as possible to flag potential issues, e.g., termite infestations, structural problems and health hazards. Issues flagged in the initial inspection might recommend further or more specialized inspections like pest inspections.
- Ask About HOA Rules: If the property is in a homeowners association, read the CC&Rs and bylaws. Review all HOA fees and other fees associated with the property, as these costs should be factored into your budget. The seller’s agent can provide information about fees, HOA rules, and help clarify the negotiation process.
- Talk to the City Planning Department: Don’t rely solely on seller or agent claims. Ask whether the current use of the property is legal, and whether the zoning is changing.
- Request a Title Report: Confirm there are no easements, encroachments, or deed restrictions that limit use. Conduct a title search to ensure clear ownership and to uncover any liens or legal issues that could affect the transaction.
Inspection findings can be used for negotiating repairs, repair credits, or concessions with the seller before finalizing the purchase. This step is crucial for protecting your investment and ensuring you do not overpay for unresolved issues.
Conduct thorough research by comparing properties, understanding market value, and reviewing the asking price in relation to comparable properties. This helps you make an informed decision and negotiate the best possible purchase price.
In competitive markets, be prepared to consider multiple offers and approach your final decision with care, weighing all findings and negotiations.
Understand all costs involved, including closing costs, mortgage options, home loan terms, and financing. Make sure you are prepared to pay the necessary amounts at each stage, whether costs are paid upfront or through your mortgage.
Diligence in real estate is important because it allows you to develop a comprehensive understanding of the property, assess risk, and make an informed decision about the purchase and purchase price. By following these steps, you protect yourself from unexpected costs and ensure your investment is sound.
Final Thought: Don’t Waive Due Diligence Lightly
In a fast-moving real estate market, buyers are sometimes encouraged to waive their due diligence rights to get the deal. That’s risky. A buyer who waived due diligence could later discover that the actual usable square footage was much less than advertised. That misstep could be the subject of litigation.
Buying a home is likely the largest investment you’ll make. Slow down. Verify everything. And if you’re unsure—ask an attorney who knows how to dig.