A Special Condition Due Diligence can be added to a contract in the instance where a buyer would like to make more substantial investigations regarding a property.
Due Diligence is an important clause if you are considering buying a property for development. It allows you to make the appropriate investigations into potential subdivision, local council planning and zoning.
Even if you are not seeking to develop a property, a due diligence clause gives a buyer the rights and time to make enquiries for example regarding plumbing and sewage plans in case you want to excavate for a pool.
A good guide for Due Diligence and other advice relating to property transactions is the Queensland Government website. You can access more information here.
This clause should be used in conjunction with legal advice pertinent to your situation so if you have any questions regarding your particular circumstances you can contact us here.
(a) This Contract is subject to the Buyer conducting any Due Diligence investigations they consider necessary and being satisfied with the results of their investigations in their complete discretion.
(b) The Buyer must give notice that they are satisfied with their Due Diligence investigations or that they waive the benefit of this condition by 5PM _______ days from the Contract Date (Due Diligence Date). If the Buyer is not satisfied with their investigations, they may by written notice to the Seller or their Solicitor terminate this contract and any Deposit paid will be refunded in full to the Buyer.
(c) If the Buyer fails to give notice that this condition is satisfied by the Due Diligence Date, the Seller may by written notice to the Buyer or their solicitor terminate this Contract and any Deposit paid will be refunded in full to the Buyer.
(d) If the Buyer fails to give notice that this condition is satisfied by the Due Diligence Date, the Buyer has the continuing right to satisfy or waive the benefit of this Condition at any time subject to paragraph (c) of this Condition.