advice on a clause-due diligence

[Sirousm]

Hi,
Would someone please clarify what the clause 'due diligence to satisfactory of the purchaser' entails, does this mean that the purchaser can pull out just because s/he believes the property is not worth buying at X amount? wouldn't be better if the specific conditions of the contract are clearly specified. I am not a solicitor/lawyer, but I think 'due diligence' is a very general terminology. I would appreciate your thoughts.
Thanks, Sirousm

 

[Raddles]

HI there
yes that is a very wide clause and I suppose it depends upon if you are the purchaser or if you are the vendor - if you are the purchaser - yes it does suggest any unsatifactory result when searching the property could be a ground to get out.
If you are the vendor - and what to pin down the purchaser - perhaps get them to highlight their concerns - does it related to whether all the building has approvals? or is there something about the plumbing that is an issue etc
thanks