2.2.3. Due diligence

Clause wording to give the buyer time to undertake further inspections or make other arrangements in relation to the purchase of the property.

Example wording for a standard due diligence clause

Important:  You should get your lawyer to assist with any legally binding contract. 

The following is an example of the kind of wording which is common in a due diligence condition. 

"This agreement is, in all respects, conditional upon the purchaser being satisfied that the property is suitable for the purchaser’s requirements following the purchaser carrying out a due diligence verification of the property, including by way of example and without limitation...

• The value and condition of the property including compliance with building and local authority regulations.

• The terms of all encumbrances, rights and interests registered against or in respect of the title.

• The overall financial suitability of the purchaser’s proposed purchase of the property.

The date for fulfillment of this due diligence condition is that date being (__) working days (recommend 10 working days) after the date of this agreement. The parties acknowledge that this due diligence condition is inserted for the sole benefit of the purchaser and may at any time prior to this agreement being voided be waived by the purchaser giving written notice of waiver to the vendor."

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