Property Development Due Diligence Checklist

A standard due diligence period typically ranges from 30 to 90 days. Getting third-party environmental reports and land surveys completed usually takes at least four to six weeks. If your project requires municipal zoning variances or special use permits, the timeline can easily extend beyond 120 days.

A Phase I assessment involves researching historical land use records and conducting a visual site inspection to identify potential contamination. A Phase II assessment is only triggered if the Phase I report identifies recognized environmental conditions, requiring physical soil, groundwater, or soil vapor sampling. Skipping a Phase I report can leave the buyer legally liable for pre-existing environmental cleanup costs.

The buyer is responsible for hiring and paying all third-party professionals for surveys, environmental assessments, and engineering reports. These upfront costs are considered pursuit costs and are generally non-refundable if the deal falls through. Sellers must provide any existing historical reports in their possession, but buyers should always independently verify those findings.

You cannot build permanent structures over an easement because the easement holder retains legal rights to access that specific portion of your land. Doing so violates property law, prevents you from securing building permits, and will void your title insurance policy. You must design your site plan to completely clear all recorded easements unless you successfully negotiate an easement abandonment with the holder.