Purchase Offer With Due Diligence Contingency

[William Coet]

Hello,

I want to begin making offers on land and buildings and include a due diligence period.

When making offers on land or commercial property is it necessary to place a non-refundable deposit in order to include a due diligence period? 

What is the typical due diligence period for land when buying land that is intended for residential development and zoning approvals are needed.

Thanks!

[Greg Dickerson]

Originally posted by @William Coet:

Hello,

I want to begin making offers on land and buildings and include a due diligence period.

When making offers on land or commercial property is it necessary to place a non-refundable deposit in order to include a due diligence period? 

What is the typical due diligence period for land when buying land that is intended for residential development and zoning approvals are needed.

Thanks!

 Land and buildings are two different things. If the buildings are in high demand the seller will likely ask for a nonrefundable earnest money deposit in competitive markets.

Land is different. In most areas I do not even place the deposit until I get through the initial 90 day feasibility study to determine if the project will even work financially and potential for approvals. Once I decide the project works I move to due diligence phase at which point I then place a deposit that is contingent upon receiving all entitlements and approvals. I tie the closing the the approvals.

Some hotter market Square land is in very high demand will require very short feasibility periods and quick closings with nonrefundable deposit.