Due diligence report meaning

Section 57 of the Town and Country Planning Act 1990 (TCPA 1990) requires planning consent for any material change in the use of buildings or land. Any limitations or conditions attached to a permission must likewise be adhered to. Liability for any existing breach will transfer to the purchaser. It is therefore essential to verify that the current use of the entire property is properly authorised and that all related conditions are being complied with, or to establish whether any unauthorised use or breach has become immune from enforcement. For further information, see Practice Note: Material change of use. Is the use authorised? Confirm the permitted use of the property, or, where relevant, each planning unit, and determine whether that use is authorised by: an explicit planning permission a certificate of lawful use, or permitted development rights If the permitted use does not mirror an express planning permission, do not assume it is unlawful; it may still be authorised by...

Planning conditions and planning obligations often limit both what development may take place and the way it is carried out on the land or buildings to which they apply. See Practice Notes: Planning conditions—key points and Planning obligations—key points. Planning obligations Agreements made under section 106 of the Town and Country Planning Act 1990 (commonly called section 106 agreements, or planning obligations) control the use of land and bind successors in title. They are recorded as local land charges. The agreement should specify the land it binds by reference to an attached plan, which will usually mirror the planning application site boundary for the related development. A section 106 agreement is typically concluded before the decision notice granting planning permission is issued. How are planning obligations revealed? Review the outcome of the local land charges search (LLC1). Planning obligations are registrable as local land charges. From 12 April 2015, HM Land Registry has responsibility for the local land charges register. Transitional provisions permit HM Land Registry...

During any due diligence, a purchaser should establish whether an energy performance certificate (EPC) and a recommendation report are required, and then confirm that a valid EPC has been provided. In a multi-let building, several EPCs may be needed for different parts of the property. An EPC allows the buyer to assess the building’s energy efficiency. It sets out a rating that can be benchmarked against the average for comparable stock. A poor score may negatively affect the property’s value. A recommendation report must accompany the EPC unless there is no reasonable potential to improve performance against the energy standards currently in force. However, owners are not legally obliged to follow the recommendations. See our Overviews: Energy performance certificates and minimum energy efficiency requirements (MEES)—overview and Energy and renewable apparatus in buildings—overview, and our Practice Notes: Energy performance certificates (EPCs)—what are they and when are they required? and Energy performance certificates (EPCs)—issues for commercial landlords and tenants. Do the Energy Performance of Buildings (England and Wales) Regulations...

Checklist This checklist explores the actions a buyer’s solicitor ought to take during due diligence to deal with matters arising from the property’s physical state and the surveyor’s findings, as part of the investigation. Although this Checklist refers to the buyer’s solicitor, equivalent considerations apply to a tenant’s solicitor acting on the grant of a new lease, and to a borrower’s solicitor involved in the financing or refinancing of property. A solicitor is not qualified to advise on the state or the value of a property, and the report on title prepared for the buyer by the buyer’s solicitor should include a qualification to that effect. If the survey or valuation identifies any issues with the property, the buyer may wish to negotiate a reduction in the price or to include an obligation in the contract requiring the seller to remedy the matter prior to completion. Has the buyer’s solicitor advised the buyer to commission a survey? A buyer’s solicitor should always advise the buyer to have the property...

In this issue: Air emissions and climate change Contamination and pollution Energy efficiency and buildings Energy for environmental lawyers Environmental information Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Nature, biodiversity and habitat conservation Waste Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change Greenhouse Gas Removals (GGR)-UK government publishes Business Model documentation On 27 August 2025, the Department for Energy Security and Net Zero (DESNZ) released a suite of papers on its proposed Greenhouse Gas Removals (GGR) Business Model and accompanying policy. The Lexis+ Energy team, working with Navraj Singh Ghaleigh, Senior Lecturer in Climate Law at the University of Edinburgh Law School, set out the context for the GGR Business Model; its relationship with the Power BECCS Business Model; the technologies the GGR framework intends to encompass; its legal footing and principal features; and how...

In this issue: Air emissions and climate change Energy for environmental lawyers Environmental disputes and proceedings Environmental permits and consents Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Marine Nature, biodiversity and habitat conservation Waste Waste producer responsibility regimes Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change DESNZ releases quarterly waste data reporting template for the UK ETS. The Department for Energy Security and Net Zero (DESNZ) has issued a template for quarterly waste data submissions under the UK Emissions Trading Scheme (UK ETS). It is designed for waste operators to use when sending quarterly data reports to their regulator during the voluntary monitoring, reporting and verification (MRV) period. See: LNB News 19/02/2026 50. AFME responds to European Commission consultation on climate resilience legislative framework. The Association for Financial Markets in Europe (AFME) has provided...

In this issue Working time and flexible working Pay Tax Prohibited conduct (discrimination etc) Employment tribunal equality claims Diversity and gender pay gap Industrial action Unfair dismissal Employment tribunals Immigration Northern Ireland ESG and sustainability: employment issues Daily and weekly news alerts Dates for your diary Trackers New Q&As Working time and flexible working Code of Practice (Requests for Flexible Working) Order 2024 (SI 2024/429): The Order designates 6 April 2024 as the date on which the updated Code of Practice on handling requests for flexible working, issued by the Advisory, Conciliation and Arbitration Service (Acas) under section 199 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992), takes effect. It also clarifies that the revised Code does not cover applications for flexible working made under section 80F of the Employment Rights Act 1996 (ERA 1996) that are lodged on or before 5 April 2024;...

This Practice Note forms part of the Lexis+® UK Corporate private equity buyout transaction toolkit. The reporting process Every adviser appointed to carry out due diligence ought to flag principal findings as they emerge, particularly any significant risks or concerns, and then prepare a due diligence report to highlight material issues arising from their review work and analysis. The advisers’ engagement letters must clearly define the agreed timetable, format and scope of the due diligence report. Draft or interim reports can be produced and shared at intervals during the process, enabling material issues to be promptly addressed as they arise. Frequently, by the point the final report goes to the private equity investor, they will be aware of all material matters that could affect the transaction in question. The aim of a legal due diligence report is to: provide the investor with adequate information about the target and to summarise that material in a succinct and comprehensive ...

Heads of terms A business purchase (the target business) typically starts with settling the key commercial points—price, structure of the deal, due diligence steps, exclusivity provisions and timetable. These points are commonly negotiated by the parties themselves, or alongside their accountants and other professional advisers, and then set out in heads of terms, sometimes called a ‘letter of intent’ or ‘memorandum of understanding’. See Practice Note: Heads of terms—share and asset purchases. Where environmental risks are known or suspected, the heads of terms might cover: providing the buyer with any existing environmental report(s) a requirement for a reliance agreement or collateral warranty, giving the buyer the benefit of those report(s) a process allowing the buyer to undertake a phase 1 environmental audit or phase 2 ground investigations headline terms for an environmental indemnity or environmental insurance What happens during the preliminary phase?...

This Practice Note forms part of the Share purchase transaction collection. The reporting process Every adviser appointed to carry out due diligence ought to promptly notify their principal conclusions as they first emerge—particularly notable risks and concerns—and subsequently compile a comprehensive due diligence report drawing focused attention to any material matters identified during their detailed review. The advisers’ engagement letters should specify the agreed timetable, format and substance of the due diligence report. Preliminary or interim papers can be produced and shared at intervals during the exercise, enabling significant points to be addressed when they surface. Frequently, by the stage the definitive report is delivered to...

1 Instructions on completing this form If while carrying out Client Due Diligence (CDD) checks, or through your ongoing monitoring duties as part of your obligations once a business relationship is already in place, you identify a material discrepancy between the beneficial ownership details supplied by the client and those appearing on the relevant registers (eg the Companies House register), you must complete this form and forward it to the [ state who the form should be sent to, eg nominated officer, head of risk, compliance officer ]...

Company number: [ insert number ] [ insert company name ] LIMITED Minutes of the board of directors’ meeting (the Meeting) of [ insert full name of company ] (the Company). Convened at [ insert place of meeting ] on [ insert day, month and year of meeting ] at [ insert time of meeting ] [ am OR pm ]. Present: [ Insert names of the director(s) physically present ] [ Insert names of any directors present by telephone as permitted by the Company’s articles of association ] (by telephone) [ Insert names of any directors present by other means permitted by the Company’s articles of association ] (by [ insert other means ]) In attendance: [ Insert name of anyone in attendance, who does not count towards the quorum for the Meeting (eg the company secretary, any legal advisers) ] Apologies: [ Insert names of any directors...

ARCHIVED : This Precedent has been archived and is not maintained. To: The [ directors OR partnership ] [ Insert the Tenant’s name, address and (if applicable) company registration number ] Dear [ insert organisation name ] [ Insert the name and address of the Property ] (the Property) 1 Scope of this report and reliance This report has been produced solely for your benefit, relating to your intention to take a lease of the Property from [ insert name and address of Landlord ] (the Landlord), at an initial yearly rent of £[ insert rent ] [ plus VAT ]. It proceeds on the basis that the Property will be used as a [ insert current use ] and that you do not plan to redevelop it [ or undertake any alterations to it ]. Our conclusions are drawn from a review of the Landlord’s [ and Head Landlord’s ] title, the Landlord’s replies to pre‑contract enquiries, and the results of searches....