Definition
A set number of days, agreed in your contract, when you can inspect and investigate the property. It ends well before closing, so start right away. This period protects you by allowing discovery of issues before committing to purchase.
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The due diligence period is a critical phase of the home buying process where buyers verify that the property matches the listing information and meets their expectations. During this time, buyers should hire inspectors, review HOA documents, and examine title documents. Many purchase agreements include contingencies that allow buyers to terminate if significant problems are discovered.
Pro Tip
Schedule inspections early in the due diligence period so you have time to address issues.
Example
The purchase agreement included a 14-day due diligence period during which the buyers conducted a home inspection, got an appraisal, and reviewed HOA documents.