2/Due Diligence Fee is defined in paragraph 1 of the new form as “[a] negotiated amount, if any, paid by Buyer to Seller with this Contract for Buyer’s right to conduct Due Diligence during the Due Diligence Period” The payment of a due diligence fee is not mandatory under the new version of the Offer to Purchase and Contract. A Buyer then must decide:
How much due diligence fee he or she is willing to pay, understanding that the fee is generally non-refundable (with some exceptions) and that the seller is not required to make any repairs to the property or agree to any other concessions that the buyer may request.
3/Separate appraisal and loan conditions have been eliminated. In the past, these have been familiar waypoints in the progress from contract to closing.
4/Repair negotiation. The new form specifically states that the parties may, but are not required to, engage in repair negotiations. There is no limitation on what the buyer can ask the seller to repair, and there is no obligation on the seller’s part to repair anything.
Your trusted Coldwell Banker HPW agent, Lynne Feiss Necrason, stands ready to assist you in understanding this new form. Please give her a call to learn about the rest of the changes the New Year has brought to our business.