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Due Diligence Phase

This post originally appeared on tBL member Lynn Drake's blog Compass-Commercial Blog | Expert Commercial Leasing Advice and is republished with permission. Find out how to syndicate your content with theBrokerList.

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Once the purchase agreement is finished, you have a lot of work ahead of you. If you put together the calendar as discussed above, make sure all the dates entered on your calendar are met. If an item can’t be completed within the agreed-upon time frame, send the notice to the seller and extend the agreement.

If anything gets off-kilter as you go through the process, turn to your attorney for advice.

It is not unusual for a building not to pass the physical inspection. If you find the building requires an expensive repair, you should notify the seller in writing and ask for a deduction in the purchase price. Depending on the seller and any number of unknown reasons, the seller will decide whether to make a reduction in the price. If the seller won’t provide a credit, you have to decide if you want to pay for this repair yourself or move to cancel the agreement.

Recently, I was working with a client, and we found the entire roof was bad. The cost for repair was $125,000. We requested that the seller pay for half of this cost. It is only fair, as the buyer was not expecting this type of repair. The seller didn’t agree, so my client was released from the contract. Make sure that if this happens to you, you get it in writing. Many months later while talking to another agent, I learned that the neighbor had come in with a higher offer than the seller had accepted from my client, so they had no incentive to negotiate.

If everything is worked out, the next step is the closing!

Nov 25, 2019Lynn Drake
10 days ago Best PracticesCompass Commercial ITRA Global, Detroit Michigan, Lynn Drake, Michigan, Tenant Representation, Tenant Representation Best Practices29
Lynn Drake

Lynn Drake's status is well known in the industry: She's the commercial realtor focused on protecting a "true north" for her clients. Lynn’s career has been built on 25 years of commercial real estate experience, which includes 15 years of managing corporate real estate departments. She has completed over 2,500 real estate transactions including office, industrial and retail leases/purchases.

Beck Partners has Partnered with Bush-Thompson InsuranceBusiness Owners: Do you manage your own business?
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