Financing
Due diligence period
A contract-defined period for investigating a property and exercising rights provided by the signed purchase agreement.
Glossary
Financing
A due-diligence period is the time a purchase agreement gives a buyer to investigate the property and make contract-permitted decisions. The agreement controls the start, deadline, notice method, contingencies, extension rights, and consequences of acting or failing to act.
Review can include title, survey, inspections, leases, rent roll, deposits, operating statements, taxes, insurance, zoning, permits, environmental issues, financing, and service contracts. The list and legal effect vary by property and transaction.
Treat the deadline as a controlled event: record the governing contract version, time zone, responsible person, open exceptions, notice requirements, and written resolution. A checklist does not extend a contractual deadline.
Operational checklist
Reconcile unit and lease records to deposits and collections; compare stated income and expenses to source documents; inspect deferred maintenance and capital needs; identify contracts that survive closing; and route title, legal, environmental, and financing questions to qualified reviewers.
Contingency is not a universal cancellation right
Whether a buyer can terminate, renegotiate, waive, or recover earnest money depends on the executed agreement and applicable law. Use transaction counsel and the named notice process for a live decision.