What does due diligence mean?

Due diligence is a term that we use to describe the inspection period in a purchase contract. For real property, that would mean the inspection of the real property. For personal property, it would mean the inspection of equipment. If you’re buying, for example, a business, you’d want to look at the books and records. It’s important to work with an experienced commercial real estate attorney when you’re buying real estate so that you can see that due diligence is done properly.