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The investigation of an asset, investment, or anything else to ensure that everything is as it seems. Due diligence helps a buyer or investor make sure that there are no unexpected problems with the asset or investment and that he/she does not overpay. Due diligence can be a complex and formalized process in the acquisition of a company. Even when buying a house, for example, due diligence involves time consuming and at times expensive endeavors, like a home inspection. However, due diligence is seen as a necessary part of doing business or buying an asset. See also: 10-K, Due diligence meeting.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
due careA legal concept meaning just, proper, and sufficient care under the circumstances. It is the care that would be taken by a reasonable person.For example,tenants are required to take due care of leased property and not use a barbecue grill in the living room.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.