Ontario Real Estate Licensing Exam Practice · Question
When preparing an Agreement of Purchase and Sale for a commercial property, what term is commonly used to describe the investigation a buyer undertakes to assess the property's condition and suitability?
Due diligence refers to the process of research and investigation performed by a buyer to understand all aspects of a commercial property before completing a pu
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Question: When preparing an Agreement of Purchase and Sale for a commercial property, what term is commonly used to describe the investigation a buyer undertakes to assess the property's condition and suitability?
Answer options: ✅ Due diligence
- Property appraisal
- Market analysis
- Title search
Correct answer: Due diligence
Explanation: Due diligence refers to the process of research and investigation performed by a buyer to understand all aspects of a commercial property before completing a purchase. This includes financial, legal, environmental, and physical assessments of the property.
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