due diligence clause
- Thread starter whitt
- Start date
But what do you MEAN when you say "due dili"?
For a house, wouldn't that be building & pest after you've done all the other research about whether this is a good investment?
Not sure how the system works in NZ, but shouldn't you have done your homework beforehand? Ie if you don't know the market values in that area then you should either do some more research or put in a low-ball offer that will give you some margin for error.
If you haven't even seen the property yet, why not put in a clause that says the offer is subject to you or your representative inspecting the property within say 7 days of the vendor's acceptance. This works in OZ.
Remember though that the more fine print you stick in the contract, the less likely that the offer will be accepted.
Also, it is ALWAYS better to be specific in the contract wording to avoid arguments about it later.
Talk to your lawyer, but first figure out exactly what investigations and enquiries you mean when you say due dili...
Good luck.
Ok what i was intending was a low ball deal before other parties put in offers on a motivated vendor.
I want to have a contract accepted quickly at a low price then have time to do some diligence.
I don't wish to pay for building inspections etc on every house i place offers on as not all will be accepted thus the clause to allow me to do inspections etc after i know i have a contract.
Also as you mention the more fine print the less likely a lowball offer is accepted, so i thought what about a due dilligence clause to cover everything whilst only being 1 clause.
I want to have a contract accepted quickly at a low price then have time to do some diligence.
I don't wish to pay for building inspections etc on every house i place offers on as not all will be accepted thus the clause to allow me to do inspections etc after i know i have a contract.
Also as you mention the more fine print the less likely a lowball offer is accepted, so i thought what about a due dilligence clause to cover everything whilst only being 1 clause.
You've obviously given this some thought, and it looks like got some advice, which is great.
I wouldn't advise a vendor to accept a contract with that sort of condition in it...but if you can get it accepted then more power to you!
I think a vendor should take particular exception to the "commercial viability" of the deal...that's the buyer's risk and the property shouldn't be taken off the market whilst you figure it out...but again, if the vendor is particularly motivated then maybe they'll bite.
Let us know how it goes!
Cheers
N.
I wouldn't advise a vendor to accept a contract with that sort of condition in it...but if you can get it accepted then more power to you!
I think a vendor should take particular exception to the "commercial viability" of the deal...that's the buyer's risk and the property shouldn't be taken off the market whilst you figure it out...but again, if the vendor is particularly motivated then maybe they'll bite.
Let us know how it goes!
Cheers
N.
