Video: Michael Feuerman answers, “What is a Due Diligence Period?”
A contractual ‘due diligence’ period is also known as an inspection period. As the name suggests, it the time granted to a buyer under a real estate purchase/sale contract, to inspect the building and land, review tenant leases (if any), get a bank loan commitment, and do anything else necessary for the buyer to decide whether they will go forward with the purchase.
The due diligence period also determines when a buyer can get their deposit back and when they cannot. This video explains the concepts in more detail, and why it’s important to work quickly and have professionals guide you through due diligence.