Residential Real Estate Due Diligence Checklist

The TC calendars the inspection period, financing contingency, appraisal contingency, and closing date from the ratified contract. Use the contract's definition of business vs. calendar days — getting this wrong is the most common reason buyers waive a contingency without realizing it.

Walk the disclosure with the buyer line by line — flag blank items the seller likely knows about (foundation, prior flooding, roof age). Capture the build year here because pre-1978 homes trigger the federal lead-based paint disclosure path.

Book the inspector inside the contract's inspection period with at least a 2-day buffer for objection drafting. Add specialty inspections where the property warrants — radon, sewer scope, termite/WDO, septic, well, pool — these usually need separate vendors.

The buyer's agent attends the inspection walk-through, then reviews the report with the buyer the same day. Separate cosmetic items from material defects (roof, HVAC, electrical, plumbing, foundation, moisture) — the objection list should focus on the latter.

Federal law requires the seller's LBP disclosure form, the EPA pamphlet, and a 10-day inspection opportunity (waivable in writing) for any home built before 1978. Confirm the form is signed by all parties before the inspection contingency expires — missing LBP paperwork is an easy-to-cite EPA violation.

The TC opens escrow and requests the title commitment from the chosen settlement agent. Confirm the legal description matches the contract and that the owner's policy is being issued in the buyer's name.

Walk Schedule B exceptions with the buyer. Common surprises: utility easements crossing planned additions, mechanic's liens from prior renovations, unreleased mortgages, and HOA assessment liens. Note any survey-required items.

Verify with the LO that the buyer has formally applied (not just pre-approved) and that the Loan Estimate has been delivered within the TRID 3-business-day window. Pre-approval is not a commitment — track conditional approval and clear-to-close as separate milestones.

Confirm the appraiser has scheduled, accessed the property, and delivered the report to the lender before the appraisal contingency expires. A low appraisal is the second most common deal-killer after financing — capture the result here so the next branch fires on time.

Walk the buyer through the status of inspection, appraisal, financing, title, and HOA review. Any unresolved item that can't close before its deadline needs either an extension addendum or a termination — silence equals waiver in most state contracts.