Due diligence clause for L/O - Posted by Tom (GA)

import · July 14, 2002, 7:35am

Posted by Scott Ewing S.W. Mich on July 14, 2002 at 10:01:27:

I would add “and either party may cancel this agreement if no suitable T/B is found within 60 days.” Just a little something to give it a deadline so YOU can get out if it’s not happening. I would say "purchase price is SUBJECT TO suitable comps etc. That’s another weasel clause you can use. Best, Scott

import · July 14, 2002, 7:35am

Posted by Tom (GA) on July 14, 2002 at 07:35:34:

Working on buying via L/O (one contract, since I’m buying). Due to high value of house I have inserted something to the affect of “Payments will not start until suitable T/B is found”. I need to get this under contract now, but won’t get comps till Monday.

My question is, what additional clause(s) do I need to insert in the L/O contract that allows me to get this under contract now and have a way out if the comps do not come in at the right number? What I have come up with so far is “Purchase price is based upon suitable comparable sales data and repair estimates.” I am using Bronchicks form.

Thanks,

Tom