Due Diligence. Such an old concept in investing. And something entirely new for North Carolina REALTORS® for 2011.
After years of "warning" us, the NC Association of REALTORS® and the NC Bar Association came together with major revisions, major simplifications, of the Standard Offer to Purchase and Contract.Yep. We are going to have a new path through the wilderness.....
Gone are inclusions of language regarding extent of repairs, negotiable repairs, and various timeline deadlines.
Gone are Alternative 1 and Alternative 2.
And the form has been massively reorganized, to bring several components of the contract into proximity in the form, rather than requiring agents and clients to hop scotch through the paperwork for details.
We are down to a few dates:
Effective Date of Contract. The clock is ticking.
Due Diligence Period End Date. Investigation, survey, appraisal. lending confirmation, repair negotiations, insurability, all rolled into one date, at which time the Buyer will decide to proceed or go fishing. No further contingencies for Buyer termination, unless Seller is unable to convey insurable and marketable title via General Warranty Deed.
Settlement Date, when we all go to the attorney's office and execute deeds, mortgages, etc.
Closing Date, when recording happens. Which most often will be the same as Settlement Date.
Of course, these revisions led to revision of many other supporting forms, agency and listing agreements, disclosures, etc.
What Fun! Bring on the New Year. Let's turn these dogs loose and see how they hunt!