Commercial Due Diligence Documents Delivery Deadline

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The due diligence period is a crucial period for any commercial real estate buyer. Commercial properties, unlike residential real estate, require a thorough examination and judgment to ensure that the purchase is an affordable price. When conducting due diligence, buyers plan for structural, environmental and mechanical inspections. They also review the tax records for their property, confirm the zoning restrictions and look for any legacy debts left by previous owners.

The contract will usually include a timeframe for the execution of due diligence. For example, the due diligence documents deadline for delivery could be from seven to fourteen days from the date of contract acceptance. The deadlines offer both the buyer as well as the seller the opportunity to negotiate any issues that may come up during the due diligence process.

The deadline for a document termination by the association is another important deadline. This is the date which the buyer is able to terminate a contract if he finds information in the HOA paperwork that makes the project unfinancial. This typically occurs 10-14 business days following the MEC. The contract also stipulates an objection resolution date – the date within which the buyer must resolve any issues with the seller which haven’t been resolved satisfactorily. The contract automatically ends when no solution is discovered by the deadline. If the information discovered during due diligence is so damaging, the buyer should request a “Notice to Terminate” from their real estate agent and an agreement to release the earnest money.