Realtors only: please define "due diligence."?

Question

strangely, it seems that different real estate agents have different ideas about what the term "due diligence" applies to. it is different than a home inspection. i am asking this to simply get the different definitions from different Realtors. the way i use it is for very specific situations, particularly with commercial real estate sales. thanks, i'd like to hear what you think.

additional details: disclosure is not necessarily the same thing as due diligence.

ADDED: due diligence is akin to what matters affect a company's profitibility when another company/person buys it. lawsuits placed against it, for example, may lower its value, therefore, the final purchase price.

in RE, it actually refers to a time period in which a seller/buyer of com./inv. property has to get an EPA report as to environmental hazards on the real estate and in the ground. if hazards exist, they must be cured prior to building more/new buildings, so that affects the sale price as well as mortgage amount allowable.

"agency" is the term that refers to putting your client's needs above your own (your commission, especially). i don't think "diligence" refers to "agency."

it sure sounds a little snooty (no one that answered sounds snooty, btw) when i see "due diligence" terms on a residential sales contract. "disclosure" is better. it means that the seller discloses any problems--especially structural--existent on the house.

please, Realtors (r),answer more

Answer 1

While the term "Due Diligence" is widely used in my industry (I'm a Realtor) I do agree with you that the term is loosely used to mean different things. Unfortunately many of them use it incorrectly in an attempt to use a phrase to make them sound intelligent. Personally as I understand it is that my due diligence lies in the performance of my fiduciary resposiblity to my client. For example, I am required to thouroughly review all documents pertaining to the transaction. Understand those documents and the meaning of the contents so that I may reasonably advise my clients. From the perspective of my clients, they are advised to do their due diligence or take reasonable steps to satisfy themselves with the terms, condition and other aspects of the transaction they are involved in. - Hope this helps.

Merriam-Webster's Dictionary of Law
Main Entry: due diligence
Function: noun
1 : such diligence as a reasonable person under the same circumstances would use : use of reasonable but not necessarily exhaustive efforts called also reasonable diligence
NOTE: Due diligence is used most often in connection with the performance of a professional or fiduciary duty, or with regard to proceeding with a court action. Due care is used more often in connection with general tort actions.
2 a : the care that a prudent person might be expected to exercise in the examination and evaluation of risks affecting a business transaction b : the process of investigation carried on usually by a disinterested third party (as an accounting or law firm) on behalf of a party contemplating a business transaction (as a corporate acquisition or merger, loan of finances, or esp. purchase of securities) for the purpose of providing information with which to evaluate the advantages and risks involved c : the defense (as to a lawsuit) that due diligence was conducted

Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.

Answer 2

There is no standard as property due diligence is tailored to the transaction and the parties involved.

The more complex the deal or the property the more items that could fall under the label. Some buyers will be more willing than others to take on responsibility for past issues or future problems will reduce the due diligence.

It really is a negotiable point between the two parties. Things like mold, structure defects, toxins on the site, approval for extensions and other items can trigger a much bigger list. In other residential deals nothing much is asked for beyond a simple inspection. Regionally there are differences as a termite inspection is common in some locations and an exceptional item in others.

Answer 3

yes sure : different real estate agents have different ideas about what the term "due diligence" applies to. it is different than a home inspection. but some thing like to home inspection .actually DUE diligence is a term used in business or in professional; world , when you are going to make a professional treaty or want to make a business deal you have to care about all the thing that make cause a risk , actually care about this risk is actually due diligence. if you are going through this deal you have to do investigate by due diligence.
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Answer 4

You're right everybody has a different opinion as to what due diligence should be however you need to understand that a licensee is going to be held in court to a higher standard of due diligence than the common person because of their license and supposedly their higher knowledge of what should be performed. A rule of thumb is that due diligence should be synonymous with reasonable care. Reasonable care is simple yet precise in it's requirement. "Reasonable care: That degree of care which a person of ordinary prudence would exercise in the same or similar circumstances or if you will due care under all circumstances. Failure to exercise such care is ordinary negligence" Add to these requirements the knowledge a licensee has that the person of ordinary prudence does not have and you have the making of due diligence.
Buena Suerte

Answer 5

I believe you are a bit confused. I am in the mortgage business and this term is used regularly by my company and Realtors that we work with. It doesn't have anything to do with home inspections or anything of that sort.

It simply means that the Realtor (or whoever) will do his absolute best to provide you with the best service that he can. This isn't a real estate term. It is just a more recent phrase used in the professional world.

Answer 6

compliment be to Allah Haraam is that for which the only which does that's going to likely be punished and the only which abstains from that's going to likely be rewarded, if the rationalization at the back of his abstinence is following the prohibition of Allaah. 'i think issues like " love"(charm to the different gender) is haram too(which contains loving your own spouse/husband).because of the fact it wil in no way benifit me contained in the hereafter,considering its no longer a sort of worship.And it makes you forget approximately approximately Allah and hereafter.Noone is worth of having extra interest then Allah!' 2d element of your question: You misunderstood! Islam teaches us to be common and useful. oftentimes, we adore because of the fact of Allah and we hate because of the fact of Allah. Islam teaches us that a male and woman can improve an excellent relationship consistent with marriage. All those memories of media and movies are no longer effective to make a individual adjust to the classes of Islam. we don't say love is halal or haram because of the fact that's a feeling. perhaps it is not below administration. you are able to choose what's below administration. yet people who fall in love are in many episodes faraway from the cleansed and organic ecosystem. Marriages that are oftentimes good and lasting marriages are people who commence on the least affection. That affection grows after marriage and probably that's going to enhance until eventually the couples proceed their companionship on the Jannah. And Allah is conscious the main suitable! Jazakallah!

Answer 7

take all care about property and see all kind of risk that may arise after dealing for example taking care off gas ? electricity ? check all accets ects
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