Question

In: Operations Management

With respect to real property, due diligence is a. the process of recording the title b....

With respect to real property, due diligence is

a. the process of recording the title

b. the contract negotiation

c. the criminal background check on the seller

d. the process of investigating the property

Solutions

Expert Solution

Answer: d; the process of investigating the property

Explanation:

Before buying real property, the buyer should use due diligence which is an investigation into the current and past uses of the land to determine any chances of liability. Process of recording property, contract negotiation or criminal background check on the seller does not ensure due diligence and all aspects of transaction including the demographics and changes in the area should be inspected as part of due diligence. Hence other options are wrong and the answer is option d.

keosha answered 2 years ago
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