Greetings,
I am looking at purchasing our first CIP and as I haven't been through the process before, I was just wondering what the average due diligence period and settlement period people factor into the contract?
Any advise would be greatly appreciated.
Hi Billy,
as others will tell you, this is entirely open to negotiation with the agent.
It will depend on your purchase price and the owners plans for the funds (EG, how desperate they are to settle and how close your purchase price is to what they are asking)
As for how long you should ask for, I can only comment on our most recent purchase and we negotiated a 45 day settlement that started from the contract going unconditional. Contract didn't go unconditional for at least 45 days prior to that as the bank took their time (and I'm told our time frames weren't too bad).
You will also need to factor in how long your building inspection will take which will be influenced by the level of activity in the market. EG: If the market is going crazy, then the inspectors will be pretty busy.
Another thing to consider is comm valuations can take significantly longer to process as they not only factor in the premises but more importantly the lease and the type of business currently occupying the premises.
We purchased a vacant building and were lucky enough to have a valuer who valued the building next door less than 4 month prior so our valuation came in less than 1 week after it was ordered.
Others will tell you the min is at least 4-6 weeks with a single lease in place. If you have a multi tenanted property, they've got more leases to review which means... you guessed it.....more time!
It's not really a specific answer but I will simply say the answer to your question of "how long to allow for settlement" is...."
As long as you can possibly negotiate!!! 
