The Different Types of Due Diligence That Can Be Performed on A Property
Physical & Structural Due Diligence
Physical and structural due diligence assesses a property’s condition and ensures that it meets all applicable code requirements. This due diligence typically includes a thorough inspection of the property and a review of any available documentation, such as surveys, plans, and reports. In most cases, it may also involve testing or sampling of materials. This report will be a valuable tool in identifying potential problems and ensuring that a property is safe and sound.
Environmental Due Diligence
Buyers and sellers can help protect themselves from financial and legal liability by conducting a thorough environmental due diligence investigation. Environmental due diligence entails researching a commercial property for any potential environmental hazards. This can be an important step in purchasing or selling commercial real estate, as it can help ensure that the property is safe and compliant with environmental regulations.
Legal and Title
When commercial real estate investors are considering a property purchase, it’s important to perform due diligence to ensure that the property is properly titled and that all legal requirements have been met. Title due diligence involves researching the property’s history to ensure there are no outstanding liens or encumbrances.
Due diligence is an important part of the commercial real estate process. By taking the time to carry out due diligence, buyers can help ensure that they make a sound investment in a property suitable for their needs.