Law Office of Ryan S. Shipp, PLLC

How to effectively do due diligence

Those who are selling commercial real estate in Florida generally want the deal to close as soon as possible. Those who are prospective buyers want to make sure that they are getting a quality property. Therefore, it isn't uncommon for buyers and sellers to have different ideas as to how the due diligence process should play out. In some cases, buyers may want more time for due diligence because it also buys time to find financing.

In many cases, however, sellers will not provide contingencies related to financing the purchase. Sellers are generally aware that buyers may begin doing research into a property before making an offer. Therefore, they may feel as if there isn't a need for a lot of time to do further diligence on it. Typically, sellers want a deal to "go hard" because that means that they can keep the buyer's deposit.

There are many options that buyers and sellers have when declaring a due diligence period. In some cases, they may agree on a set period to complete this process. It may also be possible that different deadlines are created based on the issues being investigated. In some cases, buyers may make additional deposits to sellers to extend due diligence deadlines.

Those who are looking to buy a commercial property may benefit from taking their time during the due diligence process. This may increase the odds that a person is buying a property that doesn't have any significant issues related to its structural integrity or how it is zoned. Buyers may wish to contact an attorney to help with this process or to help resolve any disputes that may arise with a seller before a commercial real estate transaction closes.

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Law Office of Ryan S. Shipp, PLLC | 814 W. Lantana Rd., Suite 1 | Lantana, Florida 33462 | Phone: (561) 699-0399 | Map & Directions