Due Diligence
Buying & Selling
The research and investigation process conducted before purchasing a property to identify risks and verify claims.
Full Explanation
Due diligence encompasses all the checks you perform before committing to buy a property. This includes building and pest inspections, title searches, council checks (zoning, planned developments, easements), strata reports (for units), flood/bushfire mapping, rental market research, and financial feasibility analysis. Thorough due diligence helps you avoid costly surprises after settlement and ensures the property meets your investment criteria.
Example
Before buying a unit, you obtain a strata report showing $50,000 in upcoming special levies for roof replacement — this significantly impacts your feasibility and negotiation position.
Frequently Asked Questions
How long does due diligence take?
Typically 14-21 days from contract signing (the cooling-off or due diligence period varies by state). In that time you arrange building inspections, finance approval, strata reports, and legal review.