The time a buyer has to thoroughly investigate all aspects of a property before becoming fully committed to the purchase. This can include conducting inspections, reviewing documents, confirming zoning, checking for permits on previous renovations, and verifying property boundaries. In Ontario, due diligence is typically built into the conditional offer through specific conditions.
Why It Matters
Due diligence is your opportunity to verify that what you're buying matches what you think you're buying. In the GTA, where waiving conditions has become common in competitive markets, skipping due diligence is a gamble that can lead to expensive surprises. Take the time when the market allows it.
Real-World Example
You are considering a century home in the Junction listed at $1,100,000. During your due diligence period, you discover through a city records search that the finished basement was done without a building permit, the lot has a minor encroachment from the neighbour's fence, and the zoning does not allow the basement apartment the seller has been renting out. Each of these issues affects the property's value and your plans for it.
Ontario & GTA Context
Ontario does not have a single statutory 'due diligence period' -- instead, buyers build due diligence into their conditional offer through specific conditions (inspection, financing, lawyer review, status certificate review). Municipal records searches, zoning confirmation letters, and building permit verification are all available through the local city hall or online municipal portals.
How It Works in Practice
Create a due diligence checklist with your agent and lawyer before making an offer. Include inspections, permit verification, zoning confirmation, and title search items. In a competitive market where conditions are risky, consider doing as much due diligence as possible before submitting your offer -- pre-inspections and zoning checks can often be done before offer night.
Common Questions
What should I check during due diligence on a house?▾
Can I do due diligence before making an offer?▾
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