What Is the Due Diligence Period?
When a buyer and seller come to an agreement and sign a contract, the next step is the closing. The
period between the contract and closing is called the due diligence period.
This gives the buyer sufficient time to review various aspects of the home and to make sure there aren’t
any hidden defects. During the due diligence period, the buyer should check the overall condition of
the property by ordering a home inspection completed by a professional. The buyer should also read
the seller’s home condition report.
During this period, you will also cooperate with your lender to get your financing finalized and
coordinate with your insurance agent to purchase sufficient homeowner’s coverage. This is also a good
time to review any homeowner’s association rules and restrictions that might exist and to consider
ordering a property survey.
As the buyer, you deserve all relevant information about the home. Just remember that all of these
things should be done prior to the closing of the property.