Due diligence is required whenever a buyer, tenant or lender is proposing to:
acquire an interest in land—this can include purchasing a freehold or leasehold property or entering into a new lease
acquire an option to purchase an interest in land or a right of pre-emption in respect of an interest in land
acquire a company, whose assets include any of the above, or
take a charge or mortgage over an interest in land
Due diligence is the process by which information about the land or property is collated and assessed. It enables a buyer, tenant or lender to check what they are acquiring and that they are paying the right price for it. Ultimately, the due diligence exercise should provide them with the information they need to make an informed decision as to whether to proceed with the transaction and on what terms.
Property due diligence involves investigation of:
the seller’s, landlord’s or borrower’s title to the land or property or interest in it
the extent of any rights, restrictions, obligations, liabilities and risks associated
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