What is the typical Due Diligence Process?
First of all, lets define Due Diligence. Due Diligence according to the Merriam Webster Dictionary is “research and analysis done in preparation for a business transaction.” In the case of a real estate transaction, we can simply define Due Diligence, also referred to as “DD”, as the process involved in satisfying all of the contingencies of a purchase contract or lease. The in-depth real estate definition would be: “Proper examination of necessary information, to satisfy oneself as to its accuracy. Activities carried out by a prospective purchaser or mortgagee of real property to confirm that the property is as represented by the seller and is not subject to environmental or other problems. Due Diligence is a reasonable investigation by the parties involved to confirm that all statements within the document are true and that no material facts are omitted.”
In the standard Columbus Realtors Purchase Contract the only stated contingencies are Environmental Inspection and Property Inspection, but there is a blank that allows a buyer to write in Other Contingencies. These often include, but are not limited to, Financing, Zoning, Feasibility, Tax Incentives and many more. Also important during the contract period are the Seller providing evidence of Clear Title and all Taxes & Assessments being paid off.
As your realtors, we will help guide you through the process of where to investigate and who to speak with regarding satisfying each of your necessary contingencies. Sometimes the process can be quite simple, but other times it can take months to complete all of your Due Diligence and having an experienced team by your side will help ensure the process goes as smoothly as possible.