Glass Delivery Specialist

Commercial Due Diligence Documents Delivery Deadline

The due diligence period is a crucial period for any commercial real estate buyer. Unlike residential real estate where there are various consumer protection laws commercial properties require a rigorous examination and judgement to ensure that the purchase is a good investment at an appropriate cost. When conducting due diligence, buyers arrange for environmental, structural, building and mechanical inspections. They also obtain tax records for their property, verify the restrictions on zoning and search for any past liabilities from previous owners.

The contract usually specifies the timeline and deadline for the completion of due diligence. Due diligence documents may be delivered within seven or fourteen business days of the contract acceptance date. The deadlines also provide the buyer and seller the chance to discuss solutions to any issues that might arise during the process of due diligence.

The deadline for a document termination by the association is another important deadline. This is the date that the buyer can terminate the contract if they discover information in the HOA paperwork that renders the project unfinancial. It usually happens 10-14 business days following the MEC. The contract also stipulates an objection resolution deadline – the date at which the seller and buyer have to reach a resolution to any issues that the seller has not adequately resolved. If no resolution is reached by the deadline, the contract will automatically end. If the information discovered during due diligence is so damaging, the buyer should be able to request an “Notice to terminate” from their real estate agent, and an earnest money release.

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