How To Perform Due Diligence On A Property Purchase

When it comes to acquiring property, many buyers focus on price or location but overlook the process that confirms whether the block and the home truly meet their needs and will make financial sense in the long term. 

If you’re not familiar with the term due diligence, it is a form of research, but with clear criteria. This process is your way of verifying that the property matches your expectations, fits your intended use and isn’t hiding unwelcome surprises that could impact its value or leave you with expensive problems that need fixing.

Take a look at the steps to perform due diligence on a property purchase:

Start with your end goal

Before you begin any formal investigations/due diligence, stop and ask: What am I trying to achieve with this property? The answer will shape every step of your due diligence process.

A first home buyer will need different checks than someone planning a multi-unit development or a long-term investment. The type of advice you need, the questions you ask and the risks you weigh should all tie back to your objective.

So, start with clarity. 

  • Are you buying a place to live in for the next decade? 
  • Looking for strong rental yield? 
  • Hoping to subdivide and build? 

Knowing the purpose of the property will help you approach the purchase with specific things in mind.

Due diligence for a home purchase

If you’re buying a home to live in, your due diligence will mostly focus on whether the property is in good condition and accurately represented by the seller. Some of the essentials that complete the due diligence include:

  • Title search: Confirms that the seller is the legal owner of the property and checks for caveats, easements or restrictions related to its sale 
  • Building and pest inspection: This reveals any structural issues, water damage or infestations that could affect habitability or value and weren’t obvious in the inspection 
  • Zoning and planning overlays: These show what the land can legally be used for, and whether future development nearby might impact you 
  • Outstanding rates or levies: Ensures the seller has paid all debts owing on the property 

These checks will help you avoid inheriting someone else’s problems. For example, discovering that the deck was built without approval or that there's a termite issue could be enough for you to walk away, or it may prompt you to negotiate a better price.

Due diligence for property development

If your goal is to develop the land and add new homes, due diligence can be more complex. You’ll need to look well beyond the standard contract review or title search.

Some of the investigations that typically apply include:

  • Planning and zoning regulations: What can you legally build on this land? Are there restrictions on height, density, or use?

  • Development application (DA) process: Understand what's involved in getting council approval, including timeframes and likely challenges.

  • Overlays and local restrictions: These could include heritage protections, flood zones, or environmental constraints.

  • Utility access: Is there adequate access to water, sewer, power, and stormwater? Will upgrades be needed?

  • Incoming infrastructure and nearby projects: This could change the demographics you are catering to and the purpose of your development.

It will help if you engage the following experts: 

  • A lawyer who has development experience
  • A town planner who is familiar with the area
  • Potentially an architect or engineer
  • A project manager who has worked on development projects in the past 

Site-specific advice is critical because a mistake could mean buying a block you can’t actually build on.

Never assume — it’s your responsibility to ask

Whether you’re buying a tiny cottage or a large development site, don’t rely on what the seller tells you. It’s the buyer’s responsibility to investigate. Ask yourself:

  • What details do I need to confirm about this property before I commit?

  • What searches or expert advice will help me avoid purchasing a problematic ‘lemon’ property?

  • Am I certain that what I think I’m buying is what I’ll actually get?

The answers will differ depending on your property goals, but the mindset stays the same: question, verify and investigate. 

Intentional purchases start with information

Buying property is one of the biggest financial decisions you’ll make. A clear goal and a thorough due diligence process can help you avoid expensive surprises, delays or disappointment down the line.

What about the Sellers Disclosure

From 1 August 2025 there is a requirement for sellers of property in Queensland to provide a Sellers Disclosure Form that relates to different parts of the property. This does not change the fact that you need to do your due diligence properly as you still need to verify that all of the information disclosed to you is correct.

Due Diligence on a Property Purchase: NPR Law can help

If you have any questions or would like us to assist you with a property purchase and conducting due diligence, contact our experienced team. We are property lawyers based in Caboolture with extensive experience helping Queensland buyers make smart, legally sound decisions.

please call us on 07 3555 6333 or contact us here.