# 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.


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