What is Due Diligence in Real Estate
Due Diligence in real estate is the buyers ability to inspect the property and review any and all pertinent information about the property.
You have often heard that saying, "buyer beware"? This is a type of that saying only it gives the buyer due time to research the property and make any requests, changes or negotiations necessary to continue the transaction.
Regardless of whether or not you plan on asking anything of the seller from an inspection, it is an excellent idea to have one done. Not only will it tell you all the details about one of the most important investments you will ever make, but it will give you time and resources to plan for the future.
Due diligence can be as many reviews of the property that the buyer feels is necessary for them to complete the transaction. This may include, but certainly is not limited to, a physical inspection of the property and improvements, water, sewer / septic, soil conditions, access issues, surface impacts from subsurface or easement use, title conditions, common interest community restrictions (i.e. CC&R's or other title restrictions), survey issues, issues with the buyers intended use, development potential or impacts, leases in force, financial feasibility of the property (if an investment property), and so on. All of these will need to be coordinated or reviewed by your broker and in many cases an attorney.
If the seller did not disclose something you can prove they knew about before the sale, there is just cause for pursuing something of that nature. But after you have inspected the property and the seller has given all known issues or non-issues to you, it is up to you to proceed.
The bottom line with completion of Due Diligence is that you only have this time frame to satisfy and all curiosity you have about the property and to make sure you don't have any regrets or remorse over something that could have been known ahead of time!