What occurs during the "due diligence" phase of a real estate transaction?

During the due diligence phase of a real estate transaction, buyers undertake a thorough investigation of the property and its title. This is a critical step where buyers assess various factors that could impact their investment, including the condition of the property, any potential zoning issues, environmental concerns, and the legitimacy of the title. By examining these aspects closely, buyers can uncover relevant risks or conditions that may affect their decision to proceed with the purchase or the terms of the transaction.

This phase allows buyers to gather necessary inspections, appraisals, and reports, ensuring they are fully informed about the property before closing. It is essential in protecting the buyer's interests and creating a transparent transaction process, enabling them to make well-informed decisions based on the comprehensive evaluations conducted during this period.