The Vacant Land/Lot Purchase Contract has a Due Diligence Period (DDP) whereby every buyer has X amount of days as a ‘free look’ to determine if the property is satisfactory for buyer’s intended purpose. The amount of days is negotiable between buyer and seller but it is pre-printed in the Purchase Contract for 30 days.
Within the Due Diligence time, a buyer’s earnest money is refundable provided other terms of the contract are fulfilled and buyer gives written notification that the buyer is not satisfied because of …whatever reason.
A Due Diligence Period offers a buyer time to make an informed decision, all the while taking the property off the active market; another interested buyer would then have to do a back-up offfer. When/if Buyer 1 cancels the contract during the DDP time, then Buyer 2’s contract is entered into escrow.
Buyers have used the DDP time for various uses: percolation test, survey, soil’s test, utility confirmation, bring out a builder/architect/designer, etc. I even had a buyer get bit by a KISSING BUG and wound up in the hospital. It happened during his DDP time and thus wrote a cancellation letter to escrow explaining he was allergic to kissing bugs!
Smooch, smooch.
