What are "Due Diligence" activities in real estate transactions?

"Due Diligence" activities in real estate transactions refer to the comprehensive research and assessments conducted before finalizing the sale. This process is crucial as it allows a potential buyer to investigate various aspects of the property and surrounding area. In the due diligence phase, buyers typically evaluate property conditions, verify zoning laws, conduct title searches, review financial records, and assess any environmental risks. This careful examination helps determine whether to proceed with the transaction and under what conditions, ensuring that the buyer is making a well-informed decision.

While marketing activities to advertise the property, legal reviews of past ownership, and final walkthroughs are important steps in the transaction process, they do not encompass the broader scope of due diligence. Marketing focuses on promoting the property, legal reviews may be part of due diligence but are not comprehensive enough on their own, and final walkthroughs are conducted closer to closing to ensure the property is in the agreed-upon condition. Hence, option B accurately captures the essence of due diligence in the context of real estate transactions.