Duty of Inspection

The duty of inspection requires a prospective buyer or tenant of commercial real estate to actively examine the property before entering into a transaction. This is not a passive disclosure duty resting on the seller, but an active investigative obligation placed on the acquiring party.

In practice, this means engaging professional advisors to conduct technical surveys, verify legal documentation, measure usable area, assess environmental compliance, and review lease terms. Failure to conduct adequate inspection may later limit or eliminate claims for hidden defects, as it demonstrates lack of reasonable diligence.

This principle particularly applies to commercial transactions where parties are presumed to act with professional judgment.