First multifamily offer - advice needed
I am about to make my first offer on an apartment complex and do now want to screw up. The listing broker has filled out a standard commercial contract form with the following terms. I would very much appreciate it if some of the experienced members here can tell me whether the terms seem reasonable.
The terms stated in the form are:
1. The effective date is the date the buyer and seller sign the contract. The seller, which is a bank (REO), has 14 days to sign the offer. If they counter, I have 3 days to respond to it.
2. Within 3 days after the effective date, I have to place about 1.25% of the purchase price in escrow as a deposit. (I was surprised to see that they are not asking for anything at the time of the offer itself.)
3. The closing date is Jan 5th. (The form seems to require a specific date as opposed to "x days after the effective date" or something like that.)
4. There's a financing contingency in there. I have 5 days after the effective date to apply for a loan. If I am unable to get a loan, I get my deposit back. (While this seems very generous, this property comes with the seller offering financing so I guess it is normal that if they decide not to offer it, then the deal changes.)
5. Seller will provide a statutory warranty deed free of liens and encumbrances. Title insurance to be paid by me. (I thought sellers usually pay this?) I will have fifteen days to examine the title after the seller provides it.
6. I have a "due diligence" period of fifteen days during which to inspect the property. There is a laundry list of things that I may check during this period ranging from water and sewer to asbestos and ADA compliance.
7. The offer is for real property and does not include any personal property. What about the appliances, aren't they considered personal property? Should I specifically mention them?
There's a ton of other stuff that seems fairly standard. My main concerns are the ones noted above and the fact that I will have just 15 days to check the property out particularly during the holiday season.
Please share your thoughts on the terms and anything else that I should consider. Thanks!