What happens if due diligence reveals problems with the property

When due diligence reveals liens, unpaid IPTU or condominium fees, registry defects, ownership disputes, construction irregularities, or environmental restrictions, the buyer has informed options: withdraw from the transaction under contract exit rights, renegotiate price or cure terms, or require the seller to remedy specific defects as a documented condition precedent to closing. The appropriate response depends on risk severity, cure cost, and investment objectives.

Buyer options when issues arise

This is precisely why due diligence must precede non-refundable deposits. A well-drafted purchase contract ties deposit refund rights to satisfactory due diligence completion. Without independent investigation, buyers discover problems after payment when contractual and practical leverage is substantially reduced — sometimes facing forfeiture of deposits or costly litigation.

Why timing matters

Due diligence reports should include explicit recommendations — proceed, renegotiate, or reconsider — supported by matrícula excerpts, tax certificates, condominium records, and municipal compliance findings that buyers can share with partners, lenders, and family advisors before committing further capital.