What is due diligence in real estate?

Due diligence is the investigation and verification process a buyer conducts before closing a transaction. It includes verifying title, liens, zoning, flood zones, taxes, assessments and physical lot conditions.

How long do I have for due diligence?

The period is set in the purchase agreement. For vacant land in Florida it's typically 10–15 days, but it's negotiable.

Who pays for the title search?

In Lee County, the seller typically pays for the title search and buyer's title insurance. But everything is negotiable in the contract.

Do I need a lawyer to buy land in Florida?

In Florida, many transactions close through title companies. Depending on the complexity of your case, legal counsel from a real estate attorney may be recommended or necessary before signing.

What if I find problems during due diligence?

It depends on your contract terms. If your agreement includes an inspection/due diligence contingency, you can typically cancel within the allowed period and request your deposit back. Without that contractual protection, you could lose the earnest money.

What is title insurance?

A policy protecting the buyer against hidden title defects (undiscovered liens, recording errors, fraud). Paid once at closing, protects as long as you own the property.

Due Diligence

Due Diligence: what to verify legally before buying land in Cape Coral

Due diligence is the most important step in the buying process. Here we detail every verification you should make, with direct links to official sources.

Quick Answers

Due diligence = investigation and verification before closing a purchase.
Typical period: 10–15 days (negotiable in the contract).
Includes: title, liens, zoning, flood zone, taxes, assessments, physical conditions.
Attorney: many closings are handled by title companies, but legal counsel is advisable when title, tax, or entity issues exist.
Title insurance protects against hidden title defects. Paid once at closing.
If you find problems, review your contract: with an active contingency you can typically cancel within deadline and request your deposit back.

Areas of due diligence

1. Title verification (Title Search)

What to look for:

Continuous chain of title: Every transfer must be documented without gaps.
Active liens: Tax, construction, judgment or city liens.
Easements: That affect the buildable area.
Lis pendens: Pending litigation against the property.
Mortgages/encumbrances: Pending mortgages or charges.

Where to verify: Lee County Clerk. A title company does the professional complete search. See detailed guide →

2. Ownership & parcel data

What to verify:

Current owner name (must match the seller).
Correct STRAP number.
Lot size, dimensions and legal description.
Assessed value vs. sale price.
Previous sales history.

Where to verify: LCPA. See detailed guide →

3. Zoning & land use

What to verify:

Current zoning classification.
That it allows your intended construction.
Future Land Use Map.
Applicable setbacks.
Additional restrictions (covenants, HOA if applicable).

Where to verify: Cape Coral GIS Maps. See detailed guide →

4. Flood zone

What to verify:

Flood zone classification (AE, X, VE).
Base Flood Elevation (BFE) if in high-risk zone.
Estimated flood insurance cost.
Impact on construction costs (required elevation).

Where to verify: FEMA MSC. See detailed guide →

5. Taxes & assessments

Current annual property taxes.
Delinquent taxes (back taxes).
Pending municipal assessments (water, sewer, paving).
Special assessments.

Where to verify: LCPA for assessments, Lee County Tax Collector for pending taxes.

6. Infrastructure & utilities

City water and sewer availability (or need for well/septic).
Adjacent canal type (saltwater=navigable, freshwater=not, no canal).
Paved road access.
Electricity and connection availability.

7. Construction viability

Lot meets minimum size for zoning.
Setbacks allow a reasonable buildable footprint.
Elevation requirements for flood zone.
Estimated impact fees for new building permit.

Where to verify: Cape Coral Permitting Division. See detailed guide →

Official due diligence sources

Source	What you verify	Link
LCPA	Ownership, value, STRAP, lot data	leepa.org
Lee Clerk	Deeds, liens, easements, plats	leeclerk.org
Cape Coral GIS	Zoning, land use, utilities	capecoral.gov/gis
FEMA MSC	Flood zones, BFE, FIRMettes	msc.fema.gov
Cape Coral Permitting	Permits, impact fees, viability	capecoral.gov
Lee Tax Collector	Taxes, delinquent taxes	leetc.com

FAQ about due diligence

Investigation and verification before closing. Includes title, liens, zoning, flood zones, taxes, assessments and physical lot conditions.

Set in the contract. Typically 10–15 days for vacant land in Florida, but negotiable.

In Lee County, typically the seller. But everything is negotiable.

In Florida, many transactions close through title companies. Depending on case complexity, having a real estate attorney before signing may be recommended or necessary.

It depends on your contract terms. With an active contingency clause, you can typically cancel within deadline and request your deposit back. Without that contractual protection, you could lose the earnest money.

A policy protecting against hidden title defects. Paid once at closing, protects as long as you own the property.