Real Estate Word of the Day: Due Diligence

Word of the Day, well... it might be Word of the Week (probably the later), but let's see how well we can keep up with this mini-feature and how much folks like it and find it useful.

Today's feature: Due Diligence.

In the financial world, it's defined by dictionary.com as:"1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.

2. Generally, due diligence refers to the care a reasonable person should take before entering in an agreement or transaction with another party."
In the real estate world, it's mostly used in conjunction with what we brokers owe the client - loyalty, obedience, accounting, disclosure, etc. It is also defined by dictionary.com as:"2. Due diligence is essentially a way of preventing unnecessary harm to either party involved in a transaction."
Learn something new every day, right?