Commercial Real Estate Due Diligence Checklist for Texas

You find a promising retail property in Plano. The location suits your plans, the numbers work, and the seller is easy to deal with.

Then the reports arrive. The survey shows that the neighbor’s dumpster pad crosses the property line. The environmental report turns up a former gas station on the site in 1974 that needs further investigation. You still have questions, and your deadline to cancel and recover the earnest money is Friday.

Due diligence gives you time to look beyond the listing and find out what you’re buying. You review the building, ownership records, leases, income, expenses, and the land’s previous uses. For a Texas commercial purchase, the contract sets the deadlines and your options if you find a problem. Arrange the inspections and document requests early so you have time to review the results.

A commercial property generally takes 30 to 60 days. However, your contract determines how much time you have. Use that period to review title and survey documents. Check zoning and leases, and arrange environmental and building assessments. If the property is being sold as is, understand what that means under your contract before the cancellation deadline passes.

How Long Is the Commercial Due Diligence Period in Texas?

Usually 30 to 60 days. You and the seller set the exact number in the contract.

That range comes from the law firm Cokinos | Young, writing in the Chambers Real Estate 2026 Texas guide. Most Texas commercial forms call it the feasibility period. Some people say inspection period. Same thing.

The deadline is what matters. Back out before it passes, and you generally get your earnest money back. Miss it by a day, and that money is usually gone.

Cokinos | Young also points out that most Texas commercial sales close as is, with very few seller warranties. Translation: if you didn’t find it, it’s your problem now.

How many days should you ask for? We’d push for 45 on a small office or strip center. If there are lots of tenants, old roofs, or a sketchy environmental history, ask for 60.

Thirty days may seem sufficient, but it passes quickly.

Below is a suggested outline for a 45-day due diligence period:

1. Days 1 to 3: Open title. Order the survey, the Phase I, and the condition assessment right away.
2. First week: Send the seller your document requisition list.
3. Days 7 to 25: Engineers and inspectors visit the site.
4. Days 15 to 30: Go through the title commitment and survey. Get your title objections in on time.
5. Days 20 to 35: Chase down tenant estoppel certificates.
6. Final 10 days: Renegotiate, extend, or walk away, in writing.

Your contract may specify different deadlines. Record each date on your calendar as soon as the agreement is signed.

What Belongs on a Commercial Real Estate Due Diligence Checklist?

Focus on five key areas: title and survey, environmental risk, property condition, zoning, and income. Overlooking any one of these can jeopardize your investment.

The cost ranges come from Papermark’s 2026 due diligence guide.

The combined cost of the three primary reports typically ranges from $8,200 to $20,000. For a $2 million property, this represents approximately 1% of the purchase price, which is a reasonable investment for risk mitigation.

What Does a Commercial Property Inspection in Texas Cover?

In practice, it’s two reports: a property condition assessment and a Phase I environmental assessment. Depending on the building, you may add an accessibility review too.

Property Condition Assessment

An engineering firm walks the roof, structure, HVAC, plumbing, electrical, parking lot, and fire systems. Most follow a standard called ASTM E2018.

You get two lists. One covers repairs needed now. The other estimates capital costs over the next 10 or 12 years.

Papermark says the “repairs needed now” list is what usually reopens price talks. Good. That’s exactly what it’s for.

In North Texas, pay particular attention to foundations. The region’s clay soil expands with moisture and contracts during dry periods. Diagonal cracks above doorways should be evaluated by an engineer.

Additionally, inquire about the age of each rooftop air conditioning unit. Replacing multiple units in the first year can significantly impact your returns.

Phase I Environmental Site Assessment

A Phase I digs through the site’s history, government records, and current conditions for signs of contamination. It has to follow ASTM E1527-21 to protect you under federal cleanup law.

The National Law Review reports that this standard became required for those protections on February 13, 2024. And the report has a shelf life. It needs to be completed within 180 days before you buy.

Honestly, we wouldn’t let anyone close a commercial deal without one. RSB Environmental describes a Texas buyer who skipped it. That buyer later got stuck with over $500,000 in cleanup costs from a leaking underground tank.

DFW adds its own twists. Partner ESI’s Plano office flags underground storage tanks and old oil and gas wells as Texas issues to check.

If the Phase I identifies concerns, a Phase II assessment involving soil or water testing may be required. This process can take several weeks, so request additional time as early as possible.

Texas Accessibility Standards

Texas has its own accessibility rules, separate from the federal ADA. The Texas Department of Licensing and Regulation, or TDLR, runs them.

If you plan to renovate, this matters. TDLR requires projects of $50,000 or more to go through a Registered Accessibility Specialist. Smaller jobs still have to comply, so budget for it now.

Which Texas Title, Survey, and Zoning Items Do Buyers Miss?

A property can look suitable during a visit and still have restrictions that affect your plans. Mineral rights, easements, boundary issues and permitted uses all deserve a closer look, especially if this is your first purchase in Texas.

Start with the title commitment. Read the exceptions and ask the title company to explain anything unclear. When comparing companies, look at how promptly they answer questions and resolve issues. Confirm which premiums and other closing charges apply to your transaction.

Review the survey alongside the title commitment. Check whether the boundaries, access points and recorded easements agree. If a neighboring fence, parking area or other structure crosses the property line, find out how it will be addressed before closing.

Ask what mineral rights come with the purchase. Owning the land does not necessarily mean you own the minerals beneath it. Have your attorney review any reserved rights and explain whether they could affect your use of the surface.

For zoning, describe your intended business to the city and ask for written confirmation that the use is allowed. Include any plans for signage, outdoor storage, or changes to the building. Also check deed restrictions and other private agreements that may limit what you can do.

Look up the property on the FEMA Flood Map Service Center. Discuss the results with your lender and insurance provider, and ask the seller about previous flooding or drainage problems.

Review the property tax records too. Find out whether the current bill includes exemptions or special valuations, and estimate what you may pay after the purchase. Use that estimate when checking whether the numbers still work.

Anticipate higher property taxes, as appraisal districts often increase assessed values following a sale. Base your tax projections on your purchase price, not the seller’s previous assessment.

All of these deadlines sit in your purchase contract. Which is why one Maryland real estate lawyer put it the way he did:

“An expertly crafted contract is worth its weight in gold.”

Arthur Blitz, former principal at Paley Rothman

How Do You Verify Leases and Financials During Due Diligence?

Check the rent roll against the leases, bank deposit records and tenant estoppel certificates. If the amounts differ, ask the seller to explain why before using that income in your calculations.

Request the past 12 months of operating statements, along with two years of CAM reconciliations. Review the property tax bills, insurance costs and service contracts too, so you can see what it costs to run the property.

Carefully review every lease agreement. Thorough examination helps prevent unexpected issues, which are seldom favorable.

Identify provisions such as early termination rights, co-tenancy clauses, free rent periods, and below-market renewal options, as any of these can reduce your income.

An estoppel certificate asks the tenant to confirm details such as rent, the security deposit and any unresolved issues with the landlord. Request these early so you have time to compare the responses with the leases and follow up on anything that differs.

Say the lease lists rent at $28 per square foot a year, but the payments work out to $24. Find out why. The tenant may have a rent discount, owe money or have a separate agreement you haven’t seen. Until you have an answer, you cannot be sure which figure to use.

How Can Out-of-State Buyers Handle Due Diligence in DFW?

If you cannot be there, arrange for someone local to attend the inspections. Have them take dated photos and keep written notes. Ask which parts of the property were checked and whether any rooms or areas were locked or otherwise inaccessible. You may need another visit to fill those gaps.

Through TPKAsset, Texas Property Knights helps clients coordinate inspectors, engineers, surveyors and title specialists across Dallas, Tarrant, Collin and Denton counties. We provide dated photographs and written site reports so you can review the findings and discuss outstanding questions with your advisers before closing.

Please note, we are not acting as your attorney or engineer. We engage licensed professionals as needed, monitor all deadlines, and promptly address any concerns that arise.

You can read more about our DFW asset services or see how we work from contract to closing.

Key Takeaways

• Know your last day to cancel under the contract. Read the “as is” terms early, while you still have time to ask questions.
• Book the survey and environmental and building assessments as soon as you can. Reports may raise questions that need another visit or further testing.
• If the seller provides an existing Phase I report, ask your consultant and lender whether it meets their requirements or needs updating.
• Find out which mineral rights come with the property, whether it has flood concerns and what your tax bill could look like after buying.
• Compare the seller’s rental figures with the leases and money actually received. Check security deposits and tenant confirmations as well. If something does not add up, get an explanation before closing.

Frequently Asked Questions

How long is the due diligence period for commercial property in Texas?

The buyer and seller agree on the timeframe in the contract. A 30- to 60-day window gives you a starting point for that discussion. Allow enough time for inspections, document reviews and follow-up work, especially with an older building or several tenants.

What inspections do I need when buying commercial property in Texas?

Start with the building’s condition and the property’s past uses. A property condition assessment and a Phase I environmental assessment help you investigate both. You may also need a survey, zoning confirmation and specialist inspections. If you plan to renovate, ask about accessibility requirements before budgeting for the work.

How much does commercial due diligence cost in Texas?

The cost depends on the property’s size, age and history, along with the reports you need. Get quotes for the survey, environmental assessment and building inspection early. Budget separately for legal work and any further testing recommended in the reports.

Can I get my earnest money back if I find problems during due diligence?

You may be able to, but finding a problem does not automatically qualify you for a refund. Your contract sets out when you can cancel, how to give notice and what money can be returned. Have your attorney check those terms before the deadline.

Do I really need a Phase I environmental report?

A Phase I is worth discussing with your lender and environmental consultant. Discuss it even when the site looks clean. It reviews past uses and records for signs of possible contamination. It may also support certain federal liability protections when the applicable requirements are met, but the report alone does not guarantee protection from cleanup costs.

If you have a DFW property under contract or are preparing to do so, contact Texas Property Knights before your due diligence period begins. We will help you track deadlines and connect with the right local professionals.

This guide is general information, not legal, tax, or engineering advice.