Traditional Purchase – In the case of a traditional purchase, the 10-day due diligence period begins with the mandatory contractual date. This is the day when buyers and sellers signed and accepted the contract. In Georgia, specific notification is required directly to unrepresented clients or to the authorised representative of represented clients by the date of the binding contract. What is a due diligence period? The due diligence period is when the buyer can inspect the property, pay the mortgage and prepare for the conclusion. It has a certain beginning and a certain end. In real estate, due diligence is the period immediately after the acceptance of a sales contract. Most of the time we see due diligence periods in the range of 7-14 days, but this is a negotiable position and can be as little as zero days, so no due diligence period. In case of counting the days of due diligence, day 1 is the day following the date of the contract. Unless otherwise stated, the duty of care ends on the day of the end at 11:59 p.m. You will find the mandatory date on page 7 of the RBM contract under the signatures. This period is very important in determining whether the home is suitable for the buyer.
For the seller, this period involves inspections and possible other purchase negotiations. Closing dates are not proposals or “on or before” data (unless indicated as such). There is a language in the contract that allows an adaptation if the date indicated in the contract falls to a weekend or a public holiday (yes, in the heat of the moment it can happen). It is important to me that our customers clearly understand our contracts. I recently wrote a few articles about our due diligence period and what can happen during that period and what is not. In today`s market, buyers may be confused when their 10-day due diligence period actually begins. For the most part, there are three different types of home purchases today. The first is a traditional sale with a buyer and seller.
The second is a seizure. The third is a short sale. In all three cases, due diligence can start at different times. Hey Jack The contract becomes mandatory as soon as the last party has signed the declaration of acceptance and sends it to the other parties. The treaty should be aimed at serious money. As a rule, serious money is released only when the buyer and seller sign the authorization….