It is fairly common and in fact recommended, to proceed with a
due diligence review of a property before its acquisition. At a
minimum, title to the property is confirmed through a title search
review. Often times, a much more thorough review is completed.
Matters such as zoning and other legal compliance are reviewed
together with the status of realty taxes owing as well as a
physical and environmental inspection. All of these elements should
be reviewed by a purchaser, even where the sale is made with legal
warranty, that is where the vendor sells on the basis of its
warranty that it owns the property and that the property is in good
condition. In commercial transactions, a property is often sold
without warranty or with limited warranties, such that the onus is
on the purchaser to ensure itself of the quality and condition of
the property it intends to acquire.
