Why Due Diligence Matters

Due diligence is your investigation period—the homework you do between getting a signed offer and closing the deal. Skip this step, and you might inherit title problems, access issues, or environmental liabilities that make your property worthless or unsellable.

The good news: for most vacant land deals under $20,000, due diligence is straightforward and can be completed in 2-4 hours using free online resources. Larger deals may require professional title searches, surveys, or environmental assessments.

💡 The PASS Framework

Remember these red flags that should make you PASS on a deal:

  • Probate – Property is in probate (complex, slow)
  • Access – No legal access to the property
  • Survey – Boundary disputes or survey issues
  • Special Assessments / HOA issues

The 21-Point Due Diligence Checklist

Complete each category before closing. For most deals, you can verify 90% of these items online.

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1. Title & Ownership Verification
Chain of Title
Verify seller is the legal owner. Check county recorder's office for deed history.
Tax Liens
Confirm all back taxes owed. You'll pay these at closing or negotiate seller pays.
Judgment Liens
Search for court judgments against the owner that attach to the property.
Mortgage/Deed of Trust
Verify no existing mortgages. If there are, they must be paid at closing.
Title Insurance
For deals over $5,000, strongly consider purchasing owner's title insurance.
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2. Zoning & Land Use
Zoning Classification
Confirm zoning (residential, agricultural, commercial). Check county GIS/planning portal.
Permitted Uses
What can be built? Single-family? Mobile home? RV parking? Agriculture only?
Setback Requirements
Minimum distance from property lines for any structures.
Overlay Districts
Check for wetland buffers, historic preservation, or airport approach zones.
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3. Access & Easements
Legal Road Access
Does property front a public road? If not, is there a recorded access easement?
Easements on Property
Check for utility easements, right-of-way, or neighbor access through your land.
Physical Access
Can you actually drive to the property? Seasonal roads may be impassable.
🚨 Landlocked Property = PASS

A landlocked property (no legal road access) is extremely difficult to sell. Never assume a dirt road or path provides legal access—verify it's recorded as a public road or that you have a deeded easement.

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4. Environmental & Physical
Flood Zone
Check FEMA flood maps. Zone A/AE properties require expensive flood insurance.
Wetlands
Use National Wetlands Inventory. Building on wetlands is heavily restricted.
Topography/Slope
Use Google Earth or topo maps. Steep slopes increase building costs significantly.
Environmental Contamination
For commercial properties, consider Phase I Environmental Site Assessment.
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5. Utilities & Infrastructure
Electric Service
How far to nearest power pole? Call utility company for connection cost estimate.
Water Source
Public water? Well required? Check well drilling costs and water table depth.
Septic/Sewer
Is perc test required? Some soils fail perc tests, making property unbuildable.
Internet/Cell Coverage
Rural areas may have no coverage. Important selling point to verify.
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6. HOA & Restrictions
HOA Status
Is property in an HOA? Get current dues, rules, and any outstanding assessments.
CC&Rs
Review Covenants, Conditions & Restrictions. May prohibit certain uses.
Building Requirements
Some subdivisions require minimum home size or build within certain timeframe.

Free Due Diligence Resources

ResourceWhat It ShowsURL
County GIS/Parcel ViewerOwnership, zoning, boundaries, assessed valueSearch "[County Name] GIS"
FEMA Flood MapFlood zone designationmsc.fema.gov
National Wetlands InventoryWetland areas on propertyfws.gov/wetlands/data/mapper
Google EarthAerial view, road access, terrainearth.google.com
County RecorderDeed history, liens, easementsSearch "[County] Recorder"
County AssessorTax records, assessed value, ownershipSearch "[County] Assessor"

When to Walk Away

Not every deal is worth pursuing. Walk away immediately if you discover:

  • No legal access – Landlocked properties are nearly unsellable
  • Major title issues – Probate, unclear ownership, large liens
  • Flood zone "floodway" – Can't build anything, period
  • Failed perc test – No septic = unbuildable in most areas
  • Environmental contamination – Cleanup costs exceed property value
  • Delinquent HOA dues exceeding offer price – Common in failed subdivisions
⚠️ Your Exit Clause

Always include a due diligence period in your purchase agreement (30-60 days). If you discover any deal-breaker issues, you can terminate the contract and receive your earnest money back—no questions asked.

How Greenlane Land Helps

  • Automated Property Reports – Pull zoning, flood zone, wetlands, and parcel data instantly
  • Interactive Checklist – Track DD progress for every deal in your pipeline
  • Document Storage – Attach deeds, title reports, and screenshots to each property
  • Red Flag Alerts – System warns you about common issues (flood zone, no road frontage)
  • Title Company Integration – Order title searches directly from the platform
  • Pass/Proceed Decision – Clear workflow to move deals forward or kill them quickly