Due Diligence in a Commercial Real Estate Deal
The investigation period that lets a buyer confirm what it's really buying.
What is due diligence in a commercial real estate deal?
Due diligence is the investigation period — negotiated into the purchase and sale agreement — during which a buyer confirms exactly what it is buying before committing. If the review turns up a problem, the buyer can usually renegotiate or walk away and recover its deposit.
What a buyer reviews
- Title and survey — liens, easements, encroachments, and boundaries;
- Physical condition — building systems, environmental, structural;
- Leases and income — rent roll, estoppels, and tenant obligations; and/or
- Zoning and permits — that the intended use is actually allowed.
Why the deadline matters
Due diligence rights expire on a set date. Miss it, and the buyer may lose the ability to object or terminate — and be committed to close. Managing the diligence calendar is as important as the review itself.
How Nochumson P.C. helps
Nochumson P.C. runs legal due diligence — title, survey, leases, and zoning — for buyers and investors in commercial deals. Contact us before your diligence period runs.
Related articles:
- Purchase & Sale Agreements: Commercial Deal Terms
- Letters of Intent in Real Estate Deals
- Contingencies in a Real Estate Contract
- Agreement of Sale in PA Real Estate: Buyer's & Seller's Guide
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