Core Service

Due Diligence

Due diligence is the investigation phase of any major land transaction. Before closing an acquisition, financing a project, or entering a new area, buyers and lenders rely on land professionals to verify ownership, confirm lease validity, and quantify risk.

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When Due Diligence Is Essential

Every major transaction starts with verification.

"We're acquiring a $100M lease package in 3 basins. What are we actually getting?"

A&D Transactions

Land teams examine every lease in the package — confirming proper execution, valid legal descriptions, continuous production, royalty obligations, and absence of competing claims or preferential purchase rights.

"The lender wants a title defect schedule before funding our acquisition loan."

Lending & Finance

Banks require independent verification that the collateral — mineral rights, leasehold, or property — is properly owned, free of undisclosed encumbrances, and worth what the borrower claims.

"We're merging with a company that operates in 5 states. What's our exposure?"

Corporate Transactions

Due diligence teams audit the target company's entire land position — lease maintenance, regulatory compliance, pending litigation, environmental obligations, and revenue distribution accuracy.

"We suspect the seller's net revenue interest calculations are wrong on 30% of their wells."

Revenue Verification

Landmen audit division order calculations against actual title, verify royalty burden accuracy, and identify over-payments or under-payments that could materially affect the deal valuation.

The Due Diligence Process

From data room to closing recommendation.

Scope & Data Room

Define the scope of examination, access the seller's data room, and develop a sampling strategy if a full audit isn't practical within the timeline.

Title & Lease Examination

Examine ownership chains, verify lease validity, check for expiring leases, audit royalty burdens, and flag title defects that could affect value or operations.

Risk Assessment

Categorize findings by severity — deal-breakers, adjustable items, and accepted risks. Quantify the financial impact of each issue to support pricing adjustments.

Report & Negotiation

Deliver a comprehensive title defect notice to the seller. Support the buyer's negotiating team with documentation for purchase price adjustments, indemnification terms, or deal structure modifications.

Frequently Asked Questions

How long does due diligence take?

Typical A&D transactions allow 30–60 days for land due diligence. The team size scales to the asset size — a $50M deal might use 5–10 landmen, while a $500M acquisition could require 20–50+. Tight timelines can be met by assembling larger teams through land brokers.

What's a title defect notice?

A formal written notice to the seller listing all title defects discovered during due diligence. Each defect includes the affected tract, description of the issue, suggested curative, and estimated financial impact. The seller typically has a cure period (15–30 days) before closing adjustments take effect.

Do I need CPL-level landmen for due diligence?

For high-value transactions, experienced CPL-level landmen provide the best risk assessment. For routine elements (lease file review, data entry, document organization), less experienced team members can contribute under senior supervision. Most teams use a mix of experience levels.

What's the difference between DD and title work?

Due diligence is broader. It includes title examination but also covers lease compliance, regulatory status, revenue verification, contract review, and operational risk assessment. Title work is one component (often the largest) of a comprehensive due diligence project.