Due diligence is the process of thoroughly investigating a property before closing. This includes home inspections, title searches, reviewing HOA documents, checking zoning compliance, and verifying property boundaries. The buyer's agent facilitates this process.
During the 10-day due diligence period, the buyer orders a home inspection revealing foundation issues, reviews the HOA rules finding pet restrictions, and discovers a pending rezoning application for the adjacent lot.
Due diligence is the buyer's RIGHT, not the agent's obligation. The agent must recommend inspections but the buyer decides which to pursue. If the buyer waives inspections, they assume the risk.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Frequently Asked Questions
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