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.

Order the HOA estoppel, CC&Rs, bylaws, and current budget. Several states (CA, FL, VA) give the buyer rescission rights if HOA docs are delivered late — track the statutory delivery window, not just the closing date.

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.

Deliver the objection notice in the form the contract specifies — most states use a Resolution or Repair Request addendum. Late objections waive the buyer's right to ask for repairs or credits, so submit on day N-1 of the inspection period, not day N.

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.

Send the title objection letter to the seller's side within the contract's title review window. Track each objection to either a release/payoff at closing or a written waiver from the buyer.

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.

Options: seller drops to appraised value, buyer brings cash to cover the gap, parties split the difference, or buyer terminates under the appraisal contingency. Document the chosen path in a written amendment before the contingency expires — verbal agreements don't preserve the buyer's protections.

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.

Send the termination notice in the form the contract requires before the contingency expires. Coordinate the EMD release with escrow — most states require both parties' signed release before the broker can disburse from the trust account, and commingling rules make any shortcut a license violation.