Glossary Topic: Due Diligence & Closing

Protects a buyer or lender against losses from defects in the property’s title.

Confirms a property’s zoning designation and whether its current use conforms.

The contract window in which a buyer inspects the property, lease, title, and financials before deposits go hard.

Funds a buyer deposits at contract signing; usually refundable until the due diligence period ends.

A review of current and historical site use to flag potential environmental contamination.

A signed tenant statement confirming lease terms, rent, and that no defaults exist; relied on by buyers and lenders.

Full ownership of both land and building, as opposed to a leasehold interest.

A non-binding outline of price, terms, and timing agreed before the purchase agreement is drafted.

The listing’s marketing package, summarizing the lease, tenant, location, and financials.