Property Management
What is 'due diligence' in a Delaware commercial property acquisition?
AThe buyer's obligation to pay on time at closing
BA comprehensive investigation of all aspects of a commercial property before purchase — title, physical condition, environmental status, zoning, leases, financials, and legal matters — to confirm the property meets investment criteria✓ Correct
CA review performed only by the lender before mortgage approval
DThe seller's obligation to provide all requested documents within 24 hours
Explanation
Commercial due diligence in Delaware encompasses: title examination, survey review, physical inspection (PCA), environmental assessment (Phase I/II), lease and tenant review (estoppel certificates, lease abstracts), zoning verification, financial analysis (rent rolls, operating statements), and legal review. The due diligence period is typically 30–60 days in commercial contracts.
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