The due diligence period is a specified time frame during which a buyer has the opportunity to thoroughly review and assess a property before making a final decision to purchase. This process typically involves several steps, including:

Inspection:

A professional inspection of the property is typically conducted to identify any potential issues or problems with the property, such as structural issues, plumbing problems, or electrical issues.

Title search:

A title search is conducted to verify the ownership of the property and to identify any liens, encumbrances, or other issues that may affect the transfer of ownership.

Review of documents:

The buyer will typically review a variety of documents related to the property, including the seller's property disclosure statement, title report, and any inspections or appraisals that have been conducted.

Financing:

The buyer will typically work with a lender to secure financing for the purchase, if needed. This may involve submitting financial documents and going through the loan approval process.

Escrow deposit:

The buyer may be required to make a deposit into an escrow account as a show of good faith and to secure the transaction.

Negotiation:

If any issues or concerns are identified during the due diligence period, the buyer may negotiate with the seller to address these issues or to modify the terms of the sale.

Final walkthrough:

The buyer may conduct a final walkthrough of the property prior to closing to ensure that the property is in the same condition as when the offer was made and that any agreed-upon repairs or improvements have been completed.

The length of the due diligence period can vary depending on the specifics of the transaction and the agreements between the buyer and the seller. It's typically a good idea for the buyer to allocate enough time to thoroughly review and assess the property before making a final decision to purchase.