Utah law allows commercial real estate buyers time to conduct due diligence. Before signing contracts, potential buyers may inspect properties for possible flaws. The involved parties may also discuss when to move forward with a sale or cancel.
As noted by Realestate.Utah.gov, buyers and sellers could agree on a timeline for due diligence. Forbes notes that giving buyers between 30 and 90 days generally provides ample time. It also offers enough leeway for buyers to complete any financial arrangements that cover the purchase.
Outcomes based on due diligence
Contracts may include conditions under which a buyer agrees to accept the property or walk away from it. Finding potential issues with plumbing, for instance, may result in terminating an agreement. Parties may also include terms for discussing a new sale price to cover the costs of repairs.
Purchase agreements could outline how parties intend to treat an earnest money deposit. You may negotiate whether to provide a deposit or return it. A buyer could, for example, find a potential issue with a property after providing a deposit and decide to back out. You may also discuss whether a seller may keep the deposit in cases such as when a buyer decides to acquire another property.
Changes in the review and sales process
Some transactions may lead to buyers taking longer than anticipated to finish their property review. Discovering an unknown environmental defect, for example, may require a third party to provide a cost-benefit analysis on its expected cleanup or maintenance. Buyers and sellers may need to consider revising an agreement to include a last-minute discovery as part of the agreed-upon terms.
Real estate agreements that work for both parties may involve lengthy discussions. The investment in time and effort could, however, avoid conflicts and legal action if unexpected issues arise.