Law Office of Henry B. LaTorraca Civil Trial Attorney

Due diligence in a real estate transaction

People in California who are interested in entering the thriving commercial real estate market may want to ensure that they pay sufficient attention to the due diligence process. A buyer looking to invest in a real estate project wants to avoid being mired in a problematic site with ongoing issues or legal concerns. This means investigating the integrity of the building itself, checking for zoning compliance and adherence to environmental regulations, reviewing the title to the land and studying the records of the developer or seller.

In particular, potential real estate investors may want to check that the developer actually has the cash flow projected and assess their responsibility for liabilities on the property. By thoroughly reviewing the property for sale or investment, buyers can make an informed decision about where to put their money. In addition, during this period of time, the interested buyer can also line up financing for his or her purchase. When the due diligence process's results are more negative than expected, but the buyer remains interested, it may be an occasion to reopen negotiations about price. Without reaching a new agreement, the potential deal may be canceled.

While the due diligence period may begin with a purchase agreement, it could also start earlier when an offer or letter of intent is submitted. This can help speed the process along. In most cases, sellers will want a shorter due diligence period in order to complete the sale quicker.

When entering the commercial real estate market, it is critical for a person to fully understand the property in which he or she is investing. Due diligence can be a major tool in ensuring a positive transaction. A real estate lawyer can work with a potential buyer to represent his or her interests and negotiate fair contracts that provide a strong upside to the client.

No Comments

Leave a comment
Comment Information

Creative Solutions for Complex Legal Issues

Map email us for a response

Contact the Law Office of Henry B. LaTorraca

Prospective clients are invited to contact attorney LaTorraca at 562-216-2942 for an initial lawyer consultation to discuss their legal matter.

*AV Preeminent is a certification mark of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Follow Henry B. LaTorraca Via Social Media

400 Oceangate Suite 700 Long Beach, CA 90802-4306 Phone: 562-216-2942 Fax: 562-216-2943 Map & Directions

facebook google plus LinkedIn directions