# Property Due Diligence Checklist: [Property name and transaction]

> A checklist and findings log for buying, financing or leasing a
> commercial property: title and legal, planning and permits,
> environmental, technical condition, tenancy and income, financial and
> tax, insurance, and energy and sustainability. Each item records who
> checks it, the evidence, the finding and its effect on price or terms.
> Based on common real estate transaction practice, with dated EU, UK
> and US examples where a named rule helps. Replace every `[bracketed]`
> value and every row marked *Example*. This is a checklist, not legal,
> tax or financial advice: the questions that matter, and the searches
> available, depend on the jurisdiction, so check the current official
> rules and use qualified professionals for every workstream.

<!--
Guidance: How to use this template
- Agree the scope first: which workstreams, which advisers, the budget,
  and the date the findings must be ready (usually before exchange or
  signing, and before the lender's credit approval).
- Request documents with `finance/due-diligence-request-list` and keep
  the data room index in step with the item IDs here.
- Delete items that do not apply, but write "not applicable" and why,
  so a reviewer can see the item was considered.
- Every red finding needs an owner and a route: price reduction,
  indemnity, condition precedent, insurance, or walk away.
- Fictional example: Varrowby Property Fund buying Quelmont Park
  Building B, a 4,200 m2 multi-let office. All names and findings are
  invented.
-->

## Document control

| Field | Value |
|---|---|
| Transaction | [Acquisition of Quelmont Park Building B] |
| Buyer, lender or tenant | [Varrowby Property Fund] |
| Jurisdiction | [Country, state or region] |
| Target signing date | YYYY-MM-DD |
| Owner | [Transaction manager, @name] |
| Version and status | [0.3, In progress] |
| Last updated | YYYY-MM-DD |

## 1. Scope, team and process

<!-- Guidance: Name one lead per workstream. Gaps in ownership are where findings get lost. -->

| Workstream | Lead | Adviser | Report due |
|---|---|---|---|
| Title and legal | [@name] | [Law firm] | YYYY-MM-DD |
| Planning and permits | [@name] | [Planning consultant] | YYYY-MM-DD |
| Environmental | [@name] | [Environmental consultant] | YYYY-MM-DD |
| Technical | [@name] | [Building surveyor or engineer] | YYYY-MM-DD |
| Tenancy and income | [@name] | [Property manager, lawyer] | YYYY-MM-DD |
| Financial, tax and valuation | [@name] | [Accountant, tax adviser, valuer] | YYYY-MM-DD |

```mermaid
flowchart LR
    A["Scope and budget"] --> B["Document request and data room"]
    B --> C["Workstream reviews and site visits"]
    C --> D["Findings log with RAG rating"]
    D --> E{"Any red finding?"}
    E -- "Yes" --> F["Price, indemnity, condition or walk away"]
    E -- "No" --> G["Sign-off and report to investment committee"]
    F --> G
```

## 2. Title and legal

<!-- Guidance: Confirm who owns what, what burdens the land, and what the buyer will actually get. In England and Wales the title register is held by HM Land Registry; other jurisdictions use land registers, deeds registries or title insurance with a survey. -->

| ID | Check | Evidence | RAG | Finding |
|---|---|---|---|---|
| DD-T01 | Seller owns the interest being sold; tenure and title class confirmed | Official register or title commitment | | |
| DD-T02 | Mortgages, charges and liens identified and to be released at completion | Register, lender letters | | |
| DD-T03 | Easements, rights of way, restrictive covenants and their effect on use | Register, deeds | | |
| DD-T04 | Boundaries match the site plan and the physical site | Survey; in the US, often an ALTA/NSPS land title survey | | |
| DD-T05 | Rights of access to a public road and to utilities | Searches, deeds | | |
| DD-T06 | Disputes, litigation or notices affecting the property | Seller replies, searches | | |
| DD-T07 *(Example)* | Shared car park easement benefits the neighbouring site | Register entry 4 | Amber | Rights of passage only, no parking loss; lawyer to confirm |

## 3. Planning, permits and use

<!-- Guidance: Check that the current use and every past alteration is lawful, and that nothing planned nearby harms value. -->

| ID | Check | Evidence | RAG | Finding |
|---|---|---|---|---|
| DD-P01 | Lawful use matches the actual use of each unit | Permits, zoning certificate | | |
| DD-P02 | Building permits and completion certificates for works | Local authority records | | |
| DD-P03 | Fire, occupancy and accessibility certificates where required | Certificates | | |
| DD-P04 | Heritage listing, conservation area or similar restrictions | Public registers | | |
| DD-P05 | Nearby development, road or infrastructure plans | Planning searches | | |
| DD-P06 *(Example)* | U-102 change of use to a dental clinic | Permit dated 2024 | Green | Permit in place, conditions met |

## 4. Environmental

<!-- Guidance: In the US, a Phase I environmental site assessment to ASTM E1527-21, which EPA recognises for the All Appropriate Inquiries rule (40 CFR Part 312), is the usual starting point for CERCLA landowner liability protections. Elsewhere, use the national equivalent and ask the consultant which standard they follow. -->

| ID | Check | Evidence | RAG | Finding |
|---|---|---|---|---|
| DD-E01 | Desk study of past uses and contamination risk | Phase I report or equivalent | | |
| DD-E02 | Need for intrusive investigation (Phase II) | Consultant recommendation | | |
| DD-E03 | Flood, subsidence, radon or other natural hazards | Hazard maps | | |
| DD-E04 | Hazardous materials in the building, such as asbestos | Register and survey | | |
| DD-E05 *(Example)* | Former print works use on part of the site (pre-1990) | Historical maps | Amber | Phase II limited soil sampling recommended |

## 5. Technical condition

<!-- Guidance: Commission a property condition assessment (`real-estate/property-condition-assessment`) and carry its immediate and short-term costs into the price model. -->

| ID | Check | Evidence | RAG | Finding |
|---|---|---|---|---|
| DD-C01 | Structure, envelope, roof and services condition | Condition report | | |
| DD-C02 | Immediate repairs and 10-year capital expenditure | Cost forecast | | |
| DD-C03 | Statutory inspections up to date (lifts, fire systems, gas, electrical) | Certificates, logbooks | | |
| DD-C04 | Measured areas match the rent roll | Measurement survey | | |
| DD-C05 *(Example)* | Roof membrane near end of life | PCA finding PCA-ROOF-01 | Amber | Replacement forecast in year 2; price adjustment proposed |

## 6. Tenancy and income

<!-- Guidance: Reconcile the rent roll with the leases, the bank statements and the arrears ledger. Never rely on the seller's rent roll alone. -->

| ID | Check | Evidence | RAG | Finding |
|---|---|---|---|---|
| DD-L01 | Rent roll matches the leases and the bank receipts | `real-estate/rent-roll-arrears`, ledgers | | |
| DD-L02 | Lease abstracts for every lease, with critical dates | `real-estate/lease-abstract` | | |
| DD-L03 | Rent reviews outstanding, incentives still running, side letters | Leases, side letters | | |
| DD-L04 | Arrears, disputes and tenant covenant strength | Ledger, credit checks | | |
| DD-L05 | Service charge reconciliations and deficits | Service charge accounts | | |
| DD-L06 *(Example)* | U-G02 in arrears and has a break on 2026-12-31 | Rent roll | Red | 78,000 of income at risk; seek rent guarantee from the seller |

## 7. Financial, tax and insurance

<!-- Guidance: Ask the tax adviser for the transfer taxes, VAT or sales tax treatment and any capital allowances, and the broker for insurability. -->

| ID | Check | Evidence | RAG | Finding |
|---|---|---|---|---|
| DD-F01 | Operating costs and non-recoverable costs for 3 years | Accounts | | |
| DD-F02 | Property taxes and transfer taxes | Tax adviser | | |
| DD-F03 | Insurance history, claims and reinstatement cost | Broker, valuation | | |
| DD-F04 | Independent valuation for the buyer or lender | `real-estate/property-valuation-report` | | |

## 8. Energy and sustainability

<!-- Guidance: Energy rules change often. EU example: the recast Energy Performance of Buildings Directive, Directive (EU) 2024/1275, entered into force on 28 May 2024 with a transposition deadline of 29 May 2026; check the national law that applies it. -->

| ID | Check | Evidence | RAG | Finding |
|---|---|---|---|---|
| DD-S01 | Energy performance certificate valid and rating acceptable for letting | Certificate | | |
| DD-S02 | Minimum energy standards that apply now or are announced | National rules | | |
| DD-S03 | Utility and carbon data for 3 years | Bills, meter data | | |

## 9. Findings summary and sign-off

<!-- Guidance: Summarise red and amber findings with the agreed route, then record sign-off by each workstream lead. -->

| ID | Finding | RAG | Route | Owner | Status |
|---|---|---|---|---|---|
| DD-L06 *(Example)* | Income at risk from U-G02 break | Red | Rent guarantee for 12 months or price reduction | [@name] | Negotiating |
| DD-C05 *(Example)* | Roof replacement in year 2 | Amber | Price reduction for the forecast cost | [@name] | Agreed in principle |
| DD-E05 *(Example)* | Former print works use | Amber | Phase II as a condition before signing | [@name] | Instructed |

| Workstream | Signed off by | Date |
|---|---|---|
| [Title and legal] | [@name] | YYYY-MM-DD |

## Standard and licence note

Based on common real estate due diligence practice. Named rules,
checked on 2026-10-30: ASTM E1527-21 (active edition, ASTM), the EPA All
Appropriate Inquiries rule at 40 CFR Part 312
(https://www.epa.gov/brownfields/brownfields-all-appropriate-inquiries),
the 2026 ALTA/NSPS Minimum Standard Detail Requirements for Land Title
Surveys, effective 23 February 2026 (https://www.alta.org/policies-and-standards/policy-forms/),
and Directive (EU) 2024/1275 (https://energy.ec.europa.eu/topics/energy-efficiency/energy-performance-buildings/energy-performance-buildings-directive_en).
ASTM standards are copyrighted and cited by name only. Official text:
ASTM International, purchase or licensed access: https://store.astm.org/e1527-21.html.
The text is original. Check the current official texts and a qualified
professional. Template licence: MIT.