What occurs during the "due diligence" period in real estate transactions?

The due diligence period in real estate transactions is a critical phase where the buyer takes the opportunity to conduct thorough inspections and research related to the property they are considering purchasing. During this time, buyers typically investigate the property’s condition by hiring professionals to perform inspections on key aspects such as the roof, plumbing, electrical systems, and pest issues. This enables the buyer to identify any potential problems or required repairs before finalizing the purchase.

This period also allows the buyer to review any relevant documentation, such as title reports and property disclosures, ensuring they are fully informed about the property. If significant issues arise during the due diligence inspections, the buyer may negotiate repairs, request credits, or, in some cases, walk away from the deal without significant penalties depending on the terms of the contract.

While the other options involve important aspects of the home-buying process, they do not accurately represent the primary focus of the due diligence period, which is centered on the buyer’s right to investigate the property.