The Due Diligence Term typically commences on the Effective Date of the Solar Lease. The Due Diligence Term is usually a relatively short term, often ranging from six months to one year. The Due Diligence Term allows the solar company to conduct any necessary title work, surveys, feasibility studies, or permitting reviews. The Due Diligence Term May also be referred to as an “Option Term”. Solar Leases typically require the company to make a Due Diligence Payment to allow the company a relatively short period of time to identify any “deal breaker” conditions that would prevent solar development on the property. The property owner must negotiate to maximize the Due Diligence Payment from the Solar Company while negotiating to minimize the duration of the Due Diligence Term. The longer the Due Diligence Term, the longer your property is encumbered without development.