1031.Exchange INTELLIGENCE NETWORK
License territory Acquire
TRANSACTION & CLOSING

Due diligence

Also called: DD · property diligence · buyer diligence

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PLAIN-ENGLISH DEFINITION

The investigation of a property, transaction and counterparties before closing.

What it means in practice.

Real-estate diligence can include title, survey, zoning, leases, financials, physical inspections, environmental review, insurance, taxes, service contracts and financing.

Why it matters.

The exchange deadline is not a reason to lower diligence standards; it is a reason to start earlier.

Additional notes.

Real-estate diligence can include title, survey, zoning, leases, financials, physical inspections, environmental review, insurance, taxes, service contracts and financing.

CONNECTED LANGUAGE

Related definitions.

Transaction & ClosingPhase I environmental site assessmentA standardized environmental due-diligence assessment commonly used to identify potential environmental conditions and support liability defenses.Transaction & ClosingALTA surveyA detailed land-title survey prepared to recognized professional standards and commonly used in commercial real-estate transactions.Transaction & ClosingTitleThe legal ownership interest in real property and the rights associated with it.Real Estate UnderwritingRent rollA property schedule listing tenants, units, rents, lease dates and related occupancy information.
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