Due diligence is a crucial element of any commercial real estate transaction. Due diligence permits buyers to look over the property with their professional advisors, and determine if the purchase is right for them.

In most instances the contract will specify that the seller provide all the information and documents required for the buyer to carry out their due diligence. These include surveys, title policies, and improvement location certificates (ILC’s) along with Zoning matters and any prior zoning approvals that could impact the property. Due diligence is typically negotiated to be between 30 and 60 days, based on the specific requirements of the parties.

Once a buyer has completed their due diligence they will schedule structural, mechanical, engineering and building inspections. A box will be provided in the contract that identifies the date of due diligence as well as an optional survey. The purchaser will receive a written report detailing the results of their inspections. They can then decide whether to continue the purchase or to cancel the contract.

The Association Documents Objection Deadline dataroomspot.com is another aspect that is often discussed. It gives the buyer a certain amount time to go through HOA documents, including architectural control, pet and covenants and parking regulations. The typical deadline is 10-14 days following the MEC.

Finally the new ILC or survey may be required if the prior one is not current or if there is a problem regarding the property lines and boundaries. The New ILC/Survey Deadline is a date that specifies the time by which the purchaser must receive these documents and any objections must be resolved or withdrawn by this date.