A practical checklist for verifying ownership, the physical asset, costs, management, rental assumptions and payment instructions before a property commitment.
Property Due Diligence
Due diligence is the process of verifying what you are being told before you commit your money. Distance makes independent checks especially important.
Ownership and authority
- Who is the registered owner?
- Does the seller have authority to sell?
- Are there charges, restrictions or other interests affecting the property?
The physical asset
- Does the unit and floor area match the documents?
- What parking or storage is included?
- Has an independent person inspected the condition?
Total cost and ongoing obligations
- What professional and transaction costs apply?
- What are the recurring service charges?
- Who pays utilities, insurance, management and maintenance?
Rental assumptions
Request the assumptions behind projected returns. Account for vacancy, management, furnishing, service charges and maintenance. Confirm that your intended rental use is permitted.
Payment controls
Independently verify payment instructions, especially when bank details change during a transaction.
Keep your own file: retain agreements, searches, reports, receipts, payment confirmations, correspondence and handover records.
General information only; consult qualified professionals before committing to a property transaction.