The due diligence process is an extremely important part of a commercial real property transaction. It allows buyers to investigate the property with their own professional advisors to determine whether the property is suitable for the buyer.
Often, the contract will require the seller to provide all the necessary documents https://www.dataroomspot.com/what-is-intralinks/ and details for the buyer to complete their due diligence. These include surveys and title policies, along with improvement location certificates (ILCs) and zoning issues and any previous zoning approvals which may impact the property. Due diligence is typically set at 30-60 days, based on the particular requirements of the parties.
After a buyer has completed their due diligence, they will schedule mechanical, structural, engineering and building inspections. The contract typically has an item that identifies the due diligence date and an optional survey date. Upon these dates, the purchaser will receive a report on the results of their inspections. They can choose to either continue with the purchase or end the contract.
The Association Documents Objection Deadline is another issue that is usually discussed. It allows the buyer a certain amount time to go through HOA documents, including architectural control, pet and covenants, as well as parking regulations. This is usually set at 10-14 business days following the MEC.
Also the new ILC or survey might be required if the prior one is not up-to-date or if there are issues about property lines or boundaries. The New ILC/Survey deadline is a date that specifies the time by which the buyer has to receive this document and any objections or withdrawals should be made before this date.