The due diligence phase is where extensive property research comes into play. This phase at many times go in synch with the acquisition phase. Many developers may not want to wait too long on placing an offer on a parcel of land. Thus, they may continue the property research before and during acquisition of a parcel of land.
This phase also spans into the executory part of a land sales contract where the buyer has a specified amount of time to research the property and to review a seller's disclosures to determine whether to move forward with completing the acquisition. Some of the basic ones that come to mind include the visual inspection of land, natural hazard reports, the need for an environmental impact report, and the expected waiting-time process before the land can become shovel-ready.
A majority of the a project’s entitlement often lies within a parcel’s zoning and land-use designation. It is important gain an understanding of a jurisdiction's zoning code and existing developments within the area. These factors can come into play to help a developer become familiar with the area of the land to be acquired.
