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Due Diligence Clauses: Buying a property or business

Are you interested in buying property or business? Not sure what a due diligence clause is? Or how a due diligence clause can help you? 

In this video John Gallagher, solicitor from Argon Law provides the information you need know about due diligence clauses. 

Due diligence means to carry out investigations about an asset, so you can make a better informed decision about whether to commit to the purchase. 

This enables the buyer to secure the right to purchase the asset while continuing investigations and allows the buyer to withdraw from the contract if they find something faulty during their investigations. 

Key considerations for these clauses are: 

1. Rights of access the buyer has to the asset and information about it.
2. sellers obligations to provide information.
3. How long the buyer has before deciding whether to proceed. 

Ask the seller, the broker or agent whether they will consider a due diligence clause within a contract and make sure your lawyer thinks the clause is appropriately worded. 

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