Due Diligence
When does the Due Diligence Period begin?
The day after final acceptance is signed and communicated.
Contract accepted March 1. When is Day 1 of Due Diligence?
March 2
Name one thing a buyer can do during Due Diligence.
Inspections, request repairs, renegotiate price, terminate.
What governing body regulates Louisiana real estate licensees?
LREC
True or False: If a buyer receives inspection results before the DDI deadline, they automatically get extra time to negotiate.
False
Are Due Diligence days counted as business days or calendar days?
Calendar days.
Contract accepted April 10 with a 10-day Due Diligence Period. When does it expire?
April 20
If inspection reveals major issues, what are two negotiation strategies?
Request repairs or ask for price reduction.
What form is used in Louisiana for Highest and Best offers?
LREC Highest & Best Multiple Offer Form.
Can a buyer terminate after DDI if financing fails?
Yes, if a financing contingency exists.
Do weekends and holidays count toward Due Diligence deadlines?
Yes.
What is the biggest risk if an agent miscalculates contract deadlines?
Client could lose earnest money or contractual rights.
What happens if repair negotiations extend past the DDI deadline without an extension?
Buyer may lose ability to terminate.
What rights may exist on rural property besides surface ownership?
Mineral rights, timber rights, and servitudes.
What happens if a contract deadline falls on a weekend?
It still counts.
What is the safest way to protect your buyer if inspections are not finished before the deadline?
Submit an amendment extending the Due Diligence Period.
If acceptance is signed at 8 PM on June 5, when does Day 1 begin?
June 6.
True or False: Inspection reports received during DDI allow negotiation after the deadline.
False
What disclosure must sellers provide regarding property condition?
Louisiana Property Disclosure Document.
Is an amendment valid if only one party signs it?
No
What time does the Due Diligence Period expire on the final day?
11:59 PM.
Why should agents schedule inspections early in the Due Diligence Period?
To allow time for negotiations or extensions.
What document is used to modify contract timelines?
Amendment to the Agreement to Buy or Sell.
What is the legal agreement called when a buyer pays a seller directly over time for property ownership?
Bond for Deed.
Who ultimately holds responsibility for tracking contract deadlines?
The agent representing the client.