Make sure your Contract guarantees you access to ALL the documentation you require for the Due Diligence to be completed.
You will require complete access to all information about the proposed acquisition no matter what the Market conditions. Most Sellers will balk at providing full disclosure. The information you need up front is critical to your re-negotiation of the purchase price. In a down market a seller is still focused Houses For Sale Under 200000 Near Me on getting the best price for their property. The selling price may be compromised if you are able to find details about a property a seller would prefer you find out after you become the owner. In most cases, information arrives piecemeal and often only after repeated reminders to the seller on your part.
The Due Diligence process is deadline driven. No one wants to willingly be held at bay by the Seller who is refusing to give you needed information. Time is money and during this phase of your research about the property, time can be costly. We suggest the following paragraphs be included in your Contract. With this clause in place, your Due Diligence period begins when you have all the documents you need in your possession. Make sure you have your commercial real estate attorney review the following legal language:
Seller shall deliver to Buyer, within five (5) calendar days of the mutual acceptance of a purchase and sale agreement, the documents and information available to the Seller listed in “Addendum A” (attached).
The Due Diligence period shall begin upon receipt of required Due Diligence documents.
OR House Offer Accepted What Next
If the documents and information available to the Seller listed in “Exhibit A” (attached) are not delivered from Seller to Buyer within five (5) calendar days of the mutual acceptance of a purchase and sale agreement, the Buyer will be granted a day for day extension of the Due Diligence period until the documents and information listed in “Exhibit A” are delivered.
Make sure your document list is an exhaustive record of all the information you could possibly need about the Property.
By the way, do you want to learn more about why Doctors Invest this way? You don’t have to BE a doctor to invest like one! We have the complete Addendum A list available free when you join the NEP Network. Learn more…