The purpose of a due diligence clause is to allow the buyer time to carry out some investigations on the property they are buying. Generally, what exactly is being investigated is not specified. If you are a buyer and you have utilised this clause, then you can pull out of the contract for almost any reason whatsoever... even as silly as "my grandma doesn't like it." How good is that for the buyer?
There is a downside though. An uneducated seller may be scared off by the clause and probably worse is an educated agent could be scared off by it because they know how flexible it is. So for this reason actually getting a property under contract while using this clause can be the stumbling block. For this reason it may be a good idea, if possible, to specify exactly what it is you are investigating. Brendan explains...
There is a downside though. An uneducated seller may be scared off by the clause and probably worse is an educated agent could be scared off by it because they know how flexible it is. So for this reason actually getting a property under contract while using this clause can be the stumbling block. For this reason it may be a good idea, if possible, to specify exactly what it is you are investigating. Brendan explains...
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