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.
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
| 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 |
2. Title and legal
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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