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.