Glossary
Due diligence
The verification work a buyer performs before relying on a property claim or closing a deal.
What it means
Due diligence is the process of checking records, physical conditions, costs, risks, and assumptions before buying, renting, building, or investing.
For local real estate, due diligence can include property records, permits, code issues, insurance, flood maps, utilities, access, contractors, schools by address, and market data.
A listing description is not a substitute for official records or exact-address verification.
A practical due diligence flow starts with the big blockers first: title, ownership history, parcel boundaries, zoning, access, flood exposure, utility availability, and any recorded easements or liens. If one of those items does not support the intended use, later checks may not matter.
Buyers should separate public-record checks from physical-condition checks. Public records can reveal permits, code cases, assessments, tax history, and prior transfers, while inspections, surveys, environmental review, and contractor bids help test the real condition and future cost of the property.
Financial due diligence should include more than the offer price. Property taxes, insurance, HOA fees, special assessments, maintenance reserves, vacancy assumptions, financing terms, and closing costs can change whether a deal works after ownership begins.
For land and redevelopment, due diligence often depends on parcel-level facts: setbacks, wetlands, septic suitability, driveway access, utility distance, impact fees, tree or habitat rules, and whether the proposed building size fits the lot. A cheap parcel can become expensive if basic infrastructure is missing.
Time matters because many purchase contracts have inspection, financing, title, and contingency deadlines. A clear due diligence checklist helps the buyer decide what must be verified before those deadlines expire and what risk would remain after closing.