Real Estate Due Diligence Checklist: Title, Condition, Occupancy, and Closing
The major information categories that can determine whether a property opportunity is actionable and how a transaction should be structured.
Due diligence is the process of testing the assumptions behind a real estate opportunity. It is broader than a property walkthrough and should be tailored to the property type, contract, parties, intended use, jurisdiction, and risk. The objective is to identify what is known, what remains uncertain, who is responsible, and which deadlines control the transaction.
Title and authority
- Confirm the record owner and every party with authority to sign.
- Review the title commitment, exceptions, easements, restrictions, liens, judgments, taxes, and payoff requirements.
- Identify probate, trust, divorce, entity, bankruptcy, guardianship, or estate authority questions.
- Confirm whether assignments, options, contract rights, or other interests are permitted and properly documented.
Physical condition
Evaluate structure, roof, foundation, drainage, electrical, plumbing, heating and cooling, water intrusion, mold, pests, environmental concerns, deferred maintenance, code issues, and major systems. HUD advises that an appraisal estimates value for a lender and does not replace a home inspection. Specialized inspections or reports may be appropriate depending on the property.
Occupancy, leases, and possession
Determine who occupies the property, under what agreement, and what happens at closing. Review leases, amendments, rent rolls, deposits, notices, delinquency, concessions, service contracts, property-management arrangements, and access rights. Confirm the legal and practical steps required for possession.
Taxes, utilities, associations, and operating costs
Review current and delinquent property taxes, assessments, utility balances, association dues, insurance, maintenance, licenses, permits, code enforcement, and recurring operating expenses. For income property, compare reported income and expenses with leases, deposits, bank records, and market assumptions.
Contract and deadline control
| Category | Typical questions |
|---|---|
| Inspection | What may be inspected, by whom, and before which deadline? |
| Title | When are title documents delivered and objections due? |
| Financing | What approval, appraisal, collateral, or lender conditions apply? |
| Due-diligence documents | Which leases, reports, permits, contracts, and records must be delivered? |
| Closing and possession | Who closes, what funds are required, and when does possession transfer? |
Transaction economics
Separate the purchase price from the all-in cost. Include closing costs, taxes, title, insurance, commissions, financing, carrying costs, utilities, repairs, permits, vacancy, leasing, property management, contingencies, and the time required to reach the intended outcome. Stress-test assumptions instead of relying only on a best-case exit.
Build a responsibility matrix
For every open item, record the responsible party, document or evidence required, deadline, dependency, and decision. This simple process reduces missed handoffs and makes it easier to see whether the transaction can proceed on schedule.
Use the correct professionals
Depending on the matter, parties may need qualified legal counsel, a licensed broker, title or escrow professionals, inspectors, engineers, surveyors, environmental consultants, tax advisers, insurance professionals, contractors, lenders, or property managers. DNVR Group’s coordination role does not replace those professional responsibilities.
Read acquisitions, dispositions, and coordination explained, review selected work, or submit an opportunity.