What does due diligence really mean when buying or selling a home? 🏡
From inspections and appraisals to contracts and contingencies, they cover how to protect your investment and make informed decisions every step of the way.
When you go under contract on a home in Utah, the due diligence period becomes your most important window. This is your chance to dig into the property, uncover any issues, and make sure the home is the right fit—legally, financially, structurally, and environmentally.
The Utah Association of REALTORS® provides a comprehensive Buyer Due Diligence Checklist, and in this post (and our podcast episode) we break it down into simple, practical steps every buyer should understand.
Whether you’re a first-time buyer or seasoned in Utah real estate, here’s exactly what you can—and should—research during due diligence.
1. Building Codes, Zoning & Intended Use
Before closing, confirm:
- Your intended use is legal (rentals, ADUs, businesses, shop buildings, etc.)
- All remodel work had permits and passed final inspection
- There is a valid Certificate of Occupancy
Why it matters: Utah cities take zoning seriously, and unpermitted work can cost you later.
2. Rental Restrictions
Thinking of Airbnb, long-term rental income, or house-hacking?
Check:
- City zoning
- County rules
- HOA restrictions
- Licensing requirements
Many buyers assume rentals are allowed, but some Utah cities have strict enforcement.
3. Hazardous Materials (Asbestos, Lead, Meth, Radon)
Utah’s due diligence includes investigating:
- Lead-based paint (pre-1978 homes)
- Asbestos in older building materials
- Meth contamination
- Radon levels (Utah is a high-radon state; test recommended)
This is where you bring in certified professionals—not rely on the seller or agent.
4. Radon Gas Testing
Radon.utah.gov lists Utah as a high-risk area.
Testing is inexpensive and results come back quickly. If levels are high, mitigation is simple but should be addressed before closing.
5. Surveying, Boundaries & Encroachments
Fences ≠ property lines.
During due diligence, consider:
- A boundary survey
- Encroachments from neighbors
- Unrecorded easements
This is especially important on acreage, rural properties, and corner lots.
6. Home Warranties
Decide if you want a home warranty and compare coverage levels. These can help with appliances and basic systems after closing.
7. Flood Zones & Insurance
Verify:
- If the home sits in a FEMA flood zone
- Whether flood insurance will be required
- Cost range for policies
Utah flood zones aren’t common, but they do exist—especially near rivers, creeks, and new construction grading.
8. Homeowners Insurance Availability
Your insurance provider will check:
- Fire risk
- Claims history on the home
- Roof age
- Plumbing & electrical systems
- Breed restrictions for pets
Some homes can be hard—or more expensive—to insure.
9. Title Review & HOA Documents
Read through:
- The title commitment
- CC&Rs
- HOA budgets, fees, rules, reserves, and meeting minutes
This section often uncovers surprise restrictions or financial red flags.
10. Physical Condition of the Home
Hire professionals to inspect:
- Roof
- Foundation
- Plumbing
- Electrical
- HVAC
- Stucco/exterior
- Appliances
- Windows
- Drainage
- Landscaping issues
This is the backbone of due diligence—and where most negotiations happen.
11. Square Footage & Acreage Verification
MLS numbers are estimates.
If size matters for financing, insurance, or future value, get independent verification.
12. Utilities & Septic Systems
Confirm:
- Connection status
- Utility providers
- Septic tank location, age, and pumping history
- Sewer scope if applicable
Rural Utah properties especially require this extra step.
13. Water Rights & Water Systems
Water is a major issue in Utah.
Check:
- Water provider
- Water quality
- Water rights ownership (if applicable)
- Well inspections for rural properties
- Connection and stand-by fees
14. Geological Conditions
Utah has:
- Expansive soils
- High water tables
- Landslide risk areas
- Wetlands
- Earthquake zones
A geotechnical evaluation can prevent costly surprises.
15. Mold
If there’s been water intrusion, test for mold.
Review the home’s history of leaks, roof age, and drainage.
16. Area & Neighborhood Conditions
Research:
- School ratings
- Crime statistics
- Proximity to industry or agriculture
- Upcoming developments
- Road expansions
- Noise or odor sources
This shapes your long-term satisfaction with the property.
17. Property Taxes & Greenbelt Status
Confirm tax status and learn if:
- The home is in Greenbelt
- Rollback taxes may apply
- Taxes will increase after sale or reassessment
18. Public Infrastructure Districts (PIDs)
More common in newer Utah communities.
PIDs can add substantial extra taxes to your bill.
19. Legal & Tax Consequences
Always speak to:
- A CPA
- A real estate attorney
- Estate planners (if needed)
Buying property has long-term tax implications.
20. FIRPTA Requirements
If the seller is a foreign person under IRS definitions, federal law may require tax withholding at closing. Your title company and CPA can guide this.
21. Energy Efficiency & Costs
Consider:
- Energy audits
- Window age
- Insulation levels
- Efficiency of systems
- Solar potential
Energy improvements can reduce bills by 20% or more.
Final Thoughts: Use Your Due Diligence to Protect Yourself
Utah’s Buyer Due Diligence Checklist empowers buyers to thoroughly evaluate every part of a property—not rely on the seller or agent for assurances.
Your due diligence period is your safety net.
Use it fully. Ask questions. Hire pros. Dive deep.
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