Due diligence

Due diligence is the investigation a buyer carries out on a property before a purchase becomes unconditional — verifying the title, the condition, the council records, the numbers and the finance.

What it usually covers

• Title — Record of Title, easements, covenants, caveats, flats plan
• Council — LIM report, consents, Code Compliance Certificates
• Condition — builder's report, and specialist reports where warranted (methamphetamine, weathertightness, geotech)
• Financial — yield, cashflow, expenses, rates, insurance quotes, body corporate levies
• Finance — confirmed lending approval on this specific property
• Rental — an independent rental appraisal rather than the agent's estimate

The due diligence clause

Most residential offers are made conditional on due diligence for a set period — commonly 10 to 15 working days. Until the condition is satisfied or waived, the contract is binding but the sale has not yet completed.

Common misunderstanding

"Caveat emptor" — let the buyer beware — is the underlying principle. Once you go unconditional, you generally have very little recourse against the vendor for something you could have discovered. The investigation is your responsibility.

At auction there is no due diligence period. Auction sales are unconditional on the fall of the hammer, so all investigation must happen before you bid — at your own cost, on a property you may not win.

Related terms

Last reviewed: 1 August 2026 · ---

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