You may have heard or read that there have been some major changes to the 2011 Offer to Purchase & Contract. In some ways, the 2011 OPC is simpler, with fewer blanks to fill in. Buyers and Sellers will know what’s “at stake” for them, and important contract terms are now clearly defined. However, there are several new provisions to which Buyers and Sellers accustomed to the “old” agreement form are well-advised to pay special attention.
1/ During an agreed-upon (new) “Due Diligence Period,” buyers will have the opportunity to investigate the property and the transaction to decide whether he and /or she will proceed with or terminate the contract. Prior to the expiration of the Due Diligence Period, the buyer may terminate the contract for any reason or no reason. That raises the question:
What’s a fair period of time to give a buyer to make a decision? The buyer typically would like for this date to fall as close to the closing as possible and the seller typically would like for this date to come sooner in the process.
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