Due Diligence and Vendors
Hi, been visiting this site for awhile and decided to sign on - great resource and interesting reading.
I have prev purchased comm property which we still hold, this was a few years earlier (2002/2003). It now seems that now there is less scope for purchasers to do any DD when looking at commercial property. Vendors either want unconditional offers or if auction, time limit and costs prevent thorough investigation.
Recently we had offer accepted on retail property, but when our solicitor sent off a few alteratios to contract and conditional on one basic report, the vendor refused and said sign today or its going to another party......well he wasnt kidding other party signed that afternoon. Very diappointing as the price was good, and we had invested 6-8weeks neg the deal.
I understand the vendors perspective, unconditional / straight sale with their contract conditions - first in best dressed.
But how are purchasers taking these risks? Basic reports such as fire safety reports and occupation certificates, shouldnt these be sourced before contract becoming conditional? Or is it matter of jumping in otherwise the premium properties are no go.
Any feedback on DD and at what point commiting to unconditional purchase would be appreciated.
Acer
Hi, been visiting this site for awhile and decided to sign on - great resource and interesting reading.
I have prev purchased comm property which we still hold, this was a few years earlier (2002/2003). It now seems that now there is less scope for purchasers to do any DD when looking at commercial property. Vendors either want unconditional offers or if auction, time limit and costs prevent thorough investigation.
Recently we had offer accepted on retail property, but when our solicitor sent off a few alteratios to contract and conditional on one basic report, the vendor refused and said sign today or its going to another party......well he wasnt kidding other party signed that afternoon. Very diappointing as the price was good, and we had invested 6-8weeks neg the deal.
I understand the vendors perspective, unconditional / straight sale with their contract conditions - first in best dressed.
But how are purchasers taking these risks? Basic reports such as fire safety reports and occupation certificates, shouldnt these be sourced before contract becoming conditional? Or is it matter of jumping in otherwise the premium properties are no go.
Any feedback on DD and at what point commiting to unconditional purchase would be appreciated.
Acer