Due diligence period

[Mark Pierce]

Very new to the process here. I'm looking at a home and talking with a work colleague about getting into a rehab together. If we make an all cash offer what is a typical due diligence period? I understand once we're under contract to get the paperwork to a title company. Then what? Do you get a home inspection like we did on our personal property? Any advice is appreciated.

[JD Martin]

When I buy all cash no financing I usually put a 2-3 week window to closing. I usually do inspections on them even if it's obvious what it needs. I work with the same title company all the time so once the inspection is good we tell them go on the title work. 

Sometimes the closing goes a little further than the window, usually because there are title issues that have to be cleaned up. For example, the last property I bought was from an estate. The authorized trustee to sell didn't have all of the authorized beneficiary signatures, and this held closing up for almost a month. I won't close without title insurance, and the insurer wouldn't issue until all of the proper court paperwork had been filed. Theoretically, I suppose, they could have walked because we missed the window, but that never happens in reality because they would face the same issue with another buyer and people usually don't want to walk from cash deals.