vi. Due Diligence & Disclosure

Due diligence and disclosure processes evaluate the accuracy, completeness, and risks associated with a real estate asset or transaction. These activities support informed decision-making, regulatory compliance, and transparency between buyers, sellers, lenders, and investors.

Data Room

A centralized repository used to store and share documents and information during diligence or transactions.

Disclosure

The act of providing material information that may influence investment or lending decisions.

Environmental Due Diligence

The review of environmental conditions, reports, and liabilities associated with a property.

Financial Due Diligence

The analysis of income, expenses, historical performance, and financial records.

Legal Due Diligence

The review of ownership, contracts, zoning, and legal compliance related to a property.

Material Information

Information that could reasonably affect a decision to invest, lend, or transact.

Operational Due Diligence

The evaluation of property operations, management practices, and systems.

Representations and Warranties

Statements made by a party regarding the condition, performance, or status of an asset.

Third-Party Reports

Independent assessments such as appraisals, engineering reports, or inspections used in diligence.

Verification

The process of confirming that disclosed information is accurate and supported by evidence.