Due Diligence Contingency in a Purchase Agreement
We recently accepted an offer to sell a property, and there is a 30 day "due diligence" contingency.
Being that we are selling as a development opportunity to a developer, I'd like to know under what conditions the buyer can back out based on results of the DD?
The earnest money has been deposited, the buyer placed an "As-Is" purchase term in the contract, and the ground work for the development is all but complete (city approvals, complete plans/engineering, permits will be issued within the next week or so, etc.). I have forwarded all pertinent docs to the buyer, know that the buyer has been in contact with the city and the architect, and I've given permission (at the buyer's request) to release stamped plans to the buyer.
Assuming there is nothing abnormal about the property or the status of the development, can the buyer back out because the DD would indicate that the price was too high? (I expected to develop this property myself, and was surprised to get a satisfactory price from a developer.)