FAQ

What is due diligence on vacant land?

Due diligence is the inspection period after you sign a Purchase Agreement and before closing. For vacant land, it is six checks. Skip any of them and you risk inheriting a problem that costs more to fix than the land is worth.

1. What is included in vacant-land due diligence?

   Six checks: (1) title — does the seller actually own it and can they convey clean title? (2) boundaries — does the recorded survey match what's on the ground? (3) access — is there legal road access or are you landlocked? (4) septic — will the soil pass a perc test for a future septic system? (5) flood — is any of the parcel in a FEMA flood zone? (6) zoning — does the county allow what you plan to build or use the land for?

2. How long is the standard inspection period?

   10-21 days for SC vacant land. Longer if a perc test or new survey is needed (those take 2-4 weeks each). The Purchase Agreement spells out the exact window.

3. Who pays for due-diligence costs?

   The buyer. Title insurance is typically paid at closing by the buyer. Surveys, perc tests, and other inspections are paid out-of-pocket by the buyer during the inspection period. If the deal falls through and the buyer terminates within the inspection window, those costs are non-refundable but the earnest money is.

4. What happens if due diligence reveals a problem?

   During the inspection period the buyer can: (a) terminate the contract and get full earnest money back, (b) renegotiate price or terms with the seller, (c) accept the property as-is and move forward. After the inspection period ends, the buyer is generally committed and can lose earnest money if they walk for non-material reasons.

LandXchange is a marketplace technology platform, not a real estate broker, law firm, or appraiser. Information here is general — for specific transactions, work with a licensed professional.