Due diligence clause vs standard conditions
The bottom line
A due diligence clause is the widest exit, but a seller may read it as a weak offer. Know when to use each.
A due diligence condition lets you cancel if you are not satisfied with any aspect of the property, in your own judgement. Standard conditions, finance, LIM and building report, are narrower but more familiar to sellers and agents, and they signal that you are serious.
In a competitive situation we often pair a short due diligence period with a finance condition. In a quiet market, a longer due diligence period costs you nothing.
Read this
The condition cheat sheet: due diligence vs standard conditions
Do this
Read how a due diligence clause saved a buyer thousands
Check yourself
Whose judgement applies under a due diligence condition?
The purchaser's.
Why might a seller prefer standard conditions?
They are narrower and signal a serious buyer.
What is a common pairing in a competitive market?
A short due diligence period plus a finance condition.
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