A seller will want to make sure that the buyer diligently pursues the approvals, so it's a good idea to put a schedule into the agreement to measure the buyer's progress. Many lenders first require a Phase I environmental site assessment , and you may want to do one whether or not you have a lender. The Phase I, prepared by an environmental consultant, reviews historic and current features, activities and conditions at the property to evaluate the potential presence of hazardous substances and what impact those substances might have on soil and groundwater quality. The report may also include a review for asbestos and lead-based paint in the buildings. Make sure you have time for testing and reviewing the results before locking into buying the property.
Warranties give the buyer recourse in case the seller or broker make misrepresentations.
Of course, warranties are no substitute for a diligent investigation of the property. Discuss with your lawyer various warranties regarding rights of other parties in the property, payment of assessments or liens, foreign seller status for tax purposes, any hazardous materials now or previously on the property and the authority of both parties to enter into and perform the agreement. The agreement should define which party is responsible for ordering a title commitment and who ultimately pays for title insurance. Practice varies from state to state. It is in the interest of both parties to get a title commitment as soon as possible and review it .