Due Diligence Clauses: Contract for Real Property

• Category: Contracts - Clauses
• State: Multi-State
• Control #: US-C-CL-675-1
• Format: Word; Rich Text

Description

A clause dictates the conditions under which the contract is legally enforceable and determines the terms of the contract. Contracts often contain boilerplate clauses or standard clauses found across most contracts. These standard clauses do not require a lot of negotiation. Included is a Sample Due Diligence Clauses for a Contract for Real Property. A due diligence investigation clause providing a purchaser with the right to perform due diligence investigations on the property after it has executed the purchase and sale agreement, including title searches and physical investigations on the property.

Due Diligence Clauses: Contract for Real Property are clauses that are set forth in a real estate contract to protect the buyer. The clauses outline the buyer's right to inspect the property before closing the deal and to terminate the deal if the inspections reveal any issues that are unacceptable to the buyer. There are several types of Due Diligence Clauses: Contract for Real Property, including: — Financing: outlines the buyer's right to obtain financing for the purchase and the seller's obligation to provide financial records as needed. — Title: outlines the buyer's right to inspect the title to the property and to terminate the deal if any problems with the title are found. — Physical Condition: outlines the buyer's right to inspect the property for physical issues and to terminate the deal if any major issues are found. — Environmental: outlines the buyer's right to inspect the property for hazardous materials and to terminate the deal if any hazardous materials are found. — Zoning: outlines the buyer's right to inspect the property for zoning issues and to terminate the deal if any zoning issues are found.