Professional Due Diligence is a 4-step process which involves the following actions: (1) Determining the problems and needs of the client, (2) Prescribing the right solutions to address the needs of the client, (3) Ensuring the protection of the client's interest all throughout the delivery of the service and documentation, and (4) Assisting the client in post-transaction glitches. Real estate transactions must undergo professional due diligence process with a Real Estate Broker in the same respect as the other profession.
DOCTORS. If you are physically ill, you have to see a Doctor, it is not good if you do treatments using do-it-yourself method. The Doctor will interview you, then diagnose your illness through some lab tests, prescribe some medication and treatment, and makes himself available for post-treatment consultation. Laboratories, pharmacies, and treatment centers will always require you to show a doctor's prescription or referral before they serve you -- this is how society give due respect to the profession of the Doctors.
STOCKS BROKERS. If you want to invest your money to stocks, you have to see a Stocks Broker, it is not good if you do investment analysis using a do-it-yourself. The Stocks Broker will assess your investment capacity, then show you the various investment portfolio that might fit your preference, present to you the fundamental analysis of the stocks that you want, and assist you in after-purchase trading of your stocks. Corporations who sell those shares of stocks will always require you to transact with the Stocks Brokers if you want to buy their company's share -- this is how society give due respect to the profession of the Stocks Brokers.
People pass through the same due diligence process in many transactions. If you want to build a house, you have to pass through the due diligence services of the Engineers. If you want to move a cargo, you have Customs Brokers. For the court proceedings, you have Lawyers... and so on and so forth.
REAL ESTATE BROKER is a due diligence profession. If you want to buy a real estate, you have to see a Real Estate Broker, it is not good if you do-it-yourself in transacting with the sellers. The Buyer Agent type of Real Estate Broker will listen to your preference wish-list, research the Multople Listing Service (MLS) and market to find properties that fits your requirement, present a wide array of choices, conduct an integrity review of the paperwork of the properties being offered, negotiate in your behalf with 100% loyalty, assist you in the closing of a purchase and in the registration of the new title.
If you want to sell your real estate, you have to see a Real Estate Broker, it will be very costly and risky if you will do-it-yourself in finding and transacting with prospective buyers. The Listing Agent type of Real Estate Broker will listen to your selling parameters, prescribe the services of a real estate appraiser, assist you in collecting the necessary documents for the property information folder, advertise your property or input it in the national MLS, interview interested buyers, negotiate in your behalf with 100% loyalty, and facilitate a smooth sales transaction.
It is for this reason that I am strongly advocating in my Platform for AIPO that DUE-DILIGENCE CERTIFICATION should be required as part of the real estate sales, mortgage, and lease transactions. This Due-Diligence Certification will make it MANDATORY for real estate buyers and sellers to transact with Real Estate Brokers.
As an aspirant officer of AIPO, one of the interesting project I have in mind for Accredited and Integrated Professional Organization of Real Estate Service Practitioners (AIPO) is something I consider as a magic pill that will eradicate the errors in transactions usually done by colorums and do-it-yourself methods. It is a mechanism that will ensure that consumers are protected and our day-to-day bread-and-butter income as professionals are guaranteed. I will push for a national policy that a "Full-Disclosure Certificate", duly certified by a licensed Broker, must be required before any propery will be offered for sale to the public. This will be supported by a post-closure policy that all Contract to Sell or Deed of Sales must have a "Due Diligence Certificate" by a Licensed Broker before it will be Notarized. The professional fees that will be charged by Brokers or Appraisers for the issuance of full disclosure certificate, due diligence certificate, and appraisal reports will be rationalized and standardized by AIPO.