Property due diligence: a complete checklist and what a due diligence report covers

In South African property sales, most agreements contain a voetstoots clause: the buyer takes the property as it stands. Disclosure rules protect buyers against known, concealed defects, but the general position remains that what you did not check is your problem.

Property due diligence is the work of checking before you are bound. This property due diligence checklist covers every area, in the order that makes sense, with links to the detail.

Before you start: get the identity right

Everything depends on checking the right property.

Erf number and township confirmed. See erf number lookup.
Boundary viewed on a map and compared with fences and walls. See check a property boundary.
Registered erf size confirmed against the advert. See erf size lookup.
Property type clear — freehold or sectional title. See freehold versus sectional title.

1. Title and legal

Title deed obtained and read.
Restrictive title conditions identified.
Servitudes identified and located on the erf.
Survey diagram checked against the deed and the ground. See SG diagram search.
Seller's authority to sell confirmed — especially for trusts, companies, estates and spouses.
Bonds, interdicts and caveats noted.

Detail: title deed search and title conditions.

2. Zoning and planning

Zoning confirmed. See zoning check.
Current use lawful under that zoning.
Intended use permitted, or the application route understood. See consent use and rezoning.
Density, coverage, height and floor area known. See floor area ratio, coverage and height.
Building lines known. See building lines.
Neighbouring zoning checked.
Planning policy for the area understood.

3. Buildings and compliance

Approved building plans obtained for every structure.
Plans compared with what is built.
Occupancy certificate for newer buildings.
Encroachments over boundaries, building lines or servitudes checked.
Compliance certificates — electrical, and gas, electric fence and others as applicable.
Home inspection by a qualified inspector.

Detail: unapproved structures: what a buyer inherits.

4. Physical and environmental

Floodlines. See floodline check.
Dolomite and soil conditions. See dolomite risk.
Wetlands and watercourses.
Slope, drainage and stormwater.
Surrounding land uses.
Aerial imagery history reviewed for changes. See reading aerial imagery history.

Overview: property risk reports.

5. Price and market

Sales history of the property. See property sales history.
Comparable sales analysed. See comparable sales reports.
Suburb statistics reviewed.
Municipal valuation noted. See municipal valuation vs market value.
Your own view of value formed. See how much is my house worth.

6. Costs and money

Transfer duty and transfer costs calculated. See transfer costs and duty.
Bond costs included.
Rates and service charges known.
Levies, for sectional title and estates.
Municipal account up to date. See municipal account arrears.
Insurance quote obtained, particularly where a risk is flagged.
Repairs and deferred maintenance costed.

7. Sectional title and estates

Levy statement and arrears for the unit.
Scheme financial statements and reserve fund.
Minutes of recent meetings — special levies, disputes, planned major works.
Conduct and management rules.
Exclusive use areas properly registered or allocated.
Insurance of the buildings.

8. For investors

Achieved rent verified, not advertised rent.
Existing lease read: term, escalation, deposit.
Vacancy in the building or area.
Net yield calculated after levies, rates, maintenance and vacancy. See rental yield, the honest way.

Also: a first-time investor's due-diligence checklist.

9. For developers

Existing rights and yield established. See what can I build on my property.
Potential rights and policy support assessed.
Services capacity and contributions estimated.
Title conditions that block the scheme identified.
Subdivision or consolidation requirements. See can I subdivide my property.
Feasibility and residual land value run. See development feasibility.

What a property due diligence report covers

A property due diligence report assembles the record-based parts of this checklist for one property, so you are not gathering them from many places.

For a Johannesburg erf, the reports on checkproperty.co.za cover:

Basic report

erf details, size and municipal valuation;
sales history and comparable sales;
suburb statistics and local services;
site constraints: floodlines, dolomite and soil;
an online report and a downloadable PDF.

Development potential report — everything in Basic, plus:

zoning, with density, height and parking zones;
building lines and the planning framework guideline;
title deed reference, servitudes and the survey diagram;
where the rules for the zone have been verified, permitted uses, coverage, and second-dwelling and subdivision assessments.

Current contents and prices are on the pricing page.

That covers the identity, most of the planning, the title references, the environmental constraints and the market evidence. What it cannot cover is anything that needs a site visit or the seller's documents: approved plans, condition, certificates, scheme records and the full wording of the deed.

Doing it in the right order

Cheap checks first, expensive ones last.

Desktop — identity, zoning, constraints, sales evidence. Minutes.
Site visits — more than one, at different times.
Documents from the seller — plans, certificates, scheme records.
Specialists — only where a flag justifies the fee.
Offer — with conditions for anything unresolved.

Most properties are eliminated or confirmed at step 1. That is the point: spend real money only on the ones that survive.

Building due diligence into the offer

Where you cannot finish before signing, protect yourself in the agreement:

a due diligence period during which you may withdraw;
suspensive conditions for finance, plans, and specialist reports;
warranties from the seller on plans and compliance;
a clear statement of what is included in the sale.

Have a conveyancer draft or review these.

Frequently asked questions

How long does property due diligence take? The desktop stage takes minutes. Obtaining plans and specialist reports can take weeks.

Is due diligence the conveyancer's job? The conveyancer handles transfer and title. Most of this checklist is the buyer's responsibility, and much of it should be done before the offer.

Do I need all of this for an ordinary house? Sections 1 to 6 apply to every purchase.

The bottom line

Property due diligence is methodical, not mysterious. Confirm identity, then title, planning, buildings, environment, price and costs — cheapest checks first — and write whatever remains open into the offer.

Start your due diligence with a property search.

This is general information, not legal, financial or town-planning advice. A property report is indicative and does not replace professional advice.