What is a due diligence investigation in a commercial real estate transaction?

A due diligence investigation in a commercial real estate transaction is a legal review of the property and the transaction documents. It is an evaluation of both the tangible and intangible assets associated with a real estate transaction. The primary purpose of a due diligence investigation is to ensure that the terms of the lease or sale agreement are accurate and clear. In Utah, this investigation typically involves a review of the title to the property, a survey of the boundaries, a review of zoning and other applicable laws, an inspection of the property, a review of the operating documents, and a review of the tenant or buyer’s creditworthiness. The due diligence investigation allows buyers or tenants to review any potential risks associated with the property, such as environmental concerns or structural issues. The due diligence investigation also helps ensure that the buyer or tenant is aware of all of the upfront costs associated with the real estate transaction. It can also provide an opportunity for buyers or tenants to negotiate terms and conditions of the lease or purchase agreement. Ultimately, the due diligence investigation helps to ensure that buyers and tenants are making informed decisions regarding the real estate transaction.

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What is a due diligence investigation in a commercial real estate transaction?

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