If a property is under contract, the status of the multiple listing system (MLS) must be changed to a quota. While real estate can still be shown, demonstrations usually slow down as soon as a house is under contract. It is possible for a seller to enter into a backup contract during the due diligence phase, but buyers #1 have the house under contract until they do not. This may be a legal obligation, but the term will apply more often to voluntary examinations. A common example of due diligence in different sectors is the process in which a potential acquirer evaluates a target company or its assets for an acquisition.  The theory behind due diligence indicates that carrying out this type of study contributes significantly to informed decision-making by improving the quantity and quality of information available to decision-makers and by ensuring that this information is systematically used to advise on this decision and all its costs, benefits and risks.  As long as the broker-dealers exercised “due diligence” in their investigation of the company whose equity they sold and as long as they disclose to the investor what they found, they would not be held responsible for the non-disclosure of information that was not discovered in the course of the investigation. With the increase in the number and amount of sanctions, the U.S. Foreign Corrupt Practices Act (FCPA) has prompted many U.S. institutions to study how they evaluate all their foreign relationships. The absence of due diligence on the part of a company`s agents, suppliers and suppliers, as well as overseas M&A partners, could lead to transactions with an organization related to a foreign official or a Crown corporation and its officers.
This link could be regarded as a bribe from foreign officials and, therefore, as a consequence of non-compliance with the FCPA.    Priority areas of due diligence are evolving and cybersecurity is becoming an issue for business acquirers.