Date: Mar. 30, 2008
On Sunday I discussed an offer with a client and was explaining the due diligence clause in our Georgia sales contract. Simply put, the due diligence clause is a "no questions asked I want out clause", or some peole say a "14 day test drive". Yep, thats right. Anytime during this period a buyer can simply say "I don't want it" and walk away. The seller has no recourse. Of course the seller can take back up contracts on the property in case the buyer decides to opt out of purchasing.
An example would be. Mr Jones makes an offer on 123 Anywhere street. In the offer he has a 14 days for his due diligence. So, Mr. Jones has 14 days to do all his inspections, check for termites, get his financing, and basically decide if he wants to buy the home or not. During this "due diligence" he can request repairs if he finds anything that he feels needs correcting. Or if he is not happy with the home, he can just walk away. But come the 15th day, all his rights under the due diligence go away and unless there are other terms in the contract, he has to proceed to closing on the date in the contract. He can't go back and ask for repairs, seller concessions, or for that matter, anything.
So that is the cliff note version of the due diligence clause in our contract!