During the due diligence period, buyers have the right to cancel the purchase agreement if they discover something risky about the property. In California, a due diligence or contingency period is allowed for sellers to deliver disclosures in seven days.The timeframe for completing the buyer's due diligence in a CAR Residential Purchase Agreement is specified in the contract. This page contains Due Diligence clauses in business contracts and legal agreements. We have organized these clauses into groups of similarly worded clauses. Think of due diligence in real estate as doing your homework. Your homework includes scoping out the area, hiring inspectors, buying home insurance and more. When purchasing commercial real estate, you should include a due diligence period as a crucial element in your negotiations and in the contract. The due diligence period is a specific timeframe during which buyers can investigate and assess properties that they're interested in purchasing.