What is the Due Diligence Period in a contract?

A due diligence period is a defined period of time in a contract during which the buyer, has the opportunity to investigate and review the details of a potential transaction before committing to it. The purpose of the due diligence period is to allow the buyer to gather information about the property being considered, and to confirm that they are suitable and meet the buyer's needs and expectations.

During the due diligence period, the buyer will have the opportunity to inspect the property, and to conduct other types of evaluations as needed.  These include home inspections, mold inspections, etc.

The due diligence period is typically included in a contract to provide protection for both parties. It allows the buyer to make an informed decision about the transaction, and it gives the seller confidence that the buyer is serious about the deal and has fully considered all relevant factors. The length of the due diligence period will depend on the complexity of the transaction and the amount of information that needs to be reviewed.  In our contracts, we typically see 10 days.