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Q.

What Happens After Due Diligence Period?

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1

20 days

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Summary
After due diligence, the buyer reviews the property findings and chooses next steps. If satisfied, the buyer completes paperwork to close the deal. For small problems like unpaid taxes or legal issues, the buyer negotiates a lower price or asks the seller to fix them. Major issues let the buyer cancel, but the buyer may lose the deposit based on contract rules

Hi. I can tell you what happens after due diligence period. So once the due diligence of any property is completed, the buyer will then decide whether to go ahead with buying the property or cancel the deal. This mostly leads to contract finalisation, negotiations over any issues or just walking away if the issues found are too much to take the deal forward. 


  1. Finalisation: If the buyer is satisfied with the due diligence report and feels the property is safe, they will move forward with closing the deal by doing all the paperwork. 

  2. Negotiation: In case issues are found with regards to pending taxes, minor legal gaps and all during the due diligence, this can lead to a price negotiation by the buyer, or the seller is asked to fix all the issues to proceed further.

  3. Termination: If the due diligence report shows issues that are big and beyond repair, the buyer can decide to cancel the deal and walk away, but they can lose the initial deposit or the earnest money they had paid to the seller. The contract terms and conditions decide what happens to the deposit money.


This is all I have to share. I hope this helps.


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