Due diligence is effectively asset-specific research into a proposed investment. Due diligence will take place once you have a high level of conviction that the asset is a suitable acquisition. However, it can involve the commitment of substantial capital to professional fees. Investing in property involves many different elements, each of which should be reviewed by an appropriate specialist professional. The elements for review include: contracts, leases, the agreement for sale and purchase and the certificate of title; town planning; engineering and building structure/fabric; taxation; and valuation. That information is absorbed, analysed and a determination is reached whether the asset is still desirable and if so at what price. A final negotiation of price and conditions with the vendor will then take place. In this way, problems can be identified and (i) resolutions can be created, (ii) contract price can be adjusted to reflect the problems or (iii) financial commitment can be abandoned. Sometimes the best deals are the ones not done. Whichever option you select, you would be well advised to engage a suitably experienced professional to assist.