A prospective buyer is shown a plot of land and receives copies of documents from a seller. The seller encourages immediate payment, saying that other buyers are interested. The buyer has not independently checked the seller’s authority, the property records, the boundaries or whether competing claims exist.

This fictional example does not concern a real property or transaction.

• Does the seller have the right and authority to transfer the interest being offered?

• What searches, consents, approvals or other checks may be required?

• Do the documents and physical boundaries correspond?

• Are there competing interests, restrictions, disputes or outstanding obligations?

Property due diligence depends on the location, the nature of the interest and the documents involved. A document supplied by a seller should not be treated as conclusive proof of ownership without appropriate independent verification. Applicable registration, consent, planning and land-use requirements should be assessed by a qualified professional.

• Have a qualified property lawyer review the transaction documents.

• Conduct appropriate searches and verification with relevant authorities.

• Confirm boundaries, possession, access and any material encumbrances.

• Do not make an irreversible payment until material concerns have been investigated and suitable contractual protections are in place.

Pressure to pay quickly is not a substitute for due diligence. Buyers should verify the seller’s authority, investigate the property and document the transaction before committing substantial funds.