Building value from knowledge

This section is concerned with due diligence: the level of judgement, care, prudence, determination, and activity that a person would reasonably be expected to exercise under particular circumstances. A due diligence investigation is a reasonable method of uncovering all facts that would be of material interest to an investor or acquirer of a business. It may or may not uncover all such facts, but it should be done in a manner reasonably calculated to do so. Due diligence is essentially a way of preventing unnecessary harm to either party, or the entity involved, in a transaction. While it may be true to say that the decision to purchase or occupy is often governed more by commercial pressures than by faults in the building, the due diligence process is designed to alert the purchaser to issues that will affect the building as an investment or as an asset - to manage the risks that are inherent in property acquisition.

This section is maintained by Trevor Rushton of Watts Group plc.