Effective due diligence is critical for uncovering previously undisclosed site challenges that may not be apparent from surface-level inspections or promotional materials. These hidden issues—legal, technical, environmental, or regulatory—can significantly impact the feasibility, cost, and timing of industrial land development. Below are five key categories of due diligence that commonly reveal such hidden risks:
1. Title and Encumbrance Verification
- Examination of historical ownership records reveals unclear or broken title chains.
- Identifies hidden liens, mortgages, or court orders that obstruct free transfer.
- May uncover pending claims by heirs, disputed sale deeds, or fraudulent transactions.
- Verifies whether the seller has legal authority to convey the land.
- Includes review of Encumbrance Certificates, registered sale deeds, and mutation records.
2. Land Use and Zoning Compliance Check
- Assesses whether the land’s use aligns with approved zoning categories (industrial, agricultural, etc.).
- Identifies unauthorized change-of-land-use (CLU) applications or pending approvals.
- Reveals master plan conflicts or proposed rezoning that restrict industrial development.
- Confirms permitted built-up area, usage intensity, and infrastructure alignment.
- Helps avoid legal action or rejection of development proposals.
3. Environmental and Geological Assessments
- Site assessments (Phase I or II) uncover soil contamination, groundwater pollution, or previous hazardous use.
- Identifies required clean-up measures, costs, or regulatory restrictions.
- Geological surveys reveal unstable terrain, high flood risk, or poor soil-bearing capacity.
- Evaluates proximity to eco-sensitive zones, wetlands, or water bodies requiring environmental clearance.
- Determines if additional mitigation or remediation plans are legally required.
4. Infrastructure and Utility Feasibility Review
- Evaluates on-site and off-site access to water, power, sewer, and road connectivity.
- Identifies hidden costs or delays in obtaining service approvals.
- Engineering surveys may reveal misaligned terrain, uneven grading, or a lack of drainage.
- May expose unofficial service connections, leading to penalties or disconnects.
- Assess the ease and cost of extending public infrastructure to the site boundary.
5. Regulatory and Litigation Review
- Searches court databases for pending legal proceedings related to the land or prior owners.
- Reviews municipal and planning authority records for code violations, stop-work notices, or fines.
- Identifies unresolved disputes with adjoining landowners or government departments.
- Verifies that prior permits or licenses (if any) were obtained legally and remain valid.
