For real estate, due diligence means performing reasonable investigation into the facts and circumstances of a real estate purchase to ensure complete understanding of the transaction.

For example, when a person purchases real estate, that person should perform due diligence to make sure that the property is in decent condition and that they are aware of any defects, damages, repairs, liens…etc.    A buyer should have a home inspection, termite inspection, and a survey (if applicable) to determine condition of the property.   For properties with a Home Owners Association or Condominium Association, a buyer will want to get the HOA or Condo documents, bylaws, rules and regulations and recent financials.   A buyer will also want to know the exact property taxes and if the property is located in a Community Development District (CDD).   All these items are a factor as to whether a particular property is a suitable investment for the buyer.