Due to increased liability risks associated with environmental pollution or code violations, verifying the regulatory compliance of a commercial or industrial facility - or even a house -- is becoming standard prepurchase practice in real estate transactions. This practice is called "due diligence." Particularly for larger projects, it can require the assistance of an attorney, engineer, or environmental consultant. Why is due diligence necessary? Why bother with the expense and effort needed to find out whether the property complies with all applicable laws and regulations? The answer is obvious. Without investigating state or local regulations, a potential buyer runs the risk of "buying a violation" and ultimately being financially responsible for correcting it. Undertaking due diligence will help determine whether all applicable regulatory requirements have