The due diligence process is an essential aspect of a commercial property transaction. It allows buyers to investigate the property with their personal advisors, and to determine whether the purchase is a good fit for them.

Often, the contract will stipulate that the seller must provide all of the necessary documents and information to allow the buyer to conduct their due diligence. These include survey policies, title policies, and improvement location certificates (ILC’s) as well as questions regarding zoning and prior zoning approvals that may impact the property. Due diligence timeframes are usually 30-90 days, depending on the requirements of both parties.

After a buyer has completed their due diligence, they usually schedule the structural, engineering, and mechanical inspections. A box will be included in the contract to indicate the date of due diligence as well as an optional survey. The buyer will be provided with an written report of the results of their inspections. They can then decide whether to keep the purchase or to cancel the contract.

The Association Documents Objection Deadline is another thing that is frequently discussed. It allows buyers a certain amount of time to review HOA documents, including architectural control, pet and covenants and parking rules. This is usually set at 10-14 business days following the MEC.

In addition the new ILC or survey might be required if the prior one is not current or if there are issues regarding the property lines and boundaries. The New ILC/Survey Deadline is a date that outlines when the buyer will be provided with these documents, and any objections must be resolvable or removed by this date.

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