My offer on my first multi-unit (7) was accepted. Since then I have been talking to insurance agencies, finance, code inspectors, and researching taxes more carefully. I no longer think it is a good deal.. I have an inspection coming up in a three days, and we are still below the contingency times. I know Brandon Turner and other podcast Bigger Pockets stars talk about putting in quick offers, and using the inspection contingency to get out of it if necessary. This would be my first time, so I have a lot of questions on how this works. Also, this would have been my first commercial property (over 4), so the commercial aspects are all new to me too. I've included the wording of the contract below for reference (at the end of the post).
QUESTIONS:
1. Since doing the Due Diligence, can I get out of it without doing the inspection (and maybe saving on inspection fees?). The wording seems to indicate maybe.
2. It sounds like I get my deposit money back then. Any reason why I would not receive this amount back in terms with this situation.
3. Any other tips or ideas about walking from this "deal"?
I appreciate any help in this matter.
Clause exact wording: "This sale IS contingent upon the results of inspection(s). It is Buyer's responsibility to determine that the condition and permitted use of the property is satisfactory. Buyer may, within 30 days (30 if not specified) from the Execution Date of this Agreement, conduct due diligence (Due Diligence Period), which includes, but is not limited to, verifying that the condition, permitted use, insurability, environmental conditions, boundaries, certifications, deed restrictions, zoning classifications and any other features of the Property are satisfactory. Buyer may request that the property be inspected, at Buyer's expense, by qualified professionals to determine the physical, structural, mechanical and environmental condition of the land, improvements or their components, or for the suitability of the property for Buyer's needs. If, as the result of Buyer's due diligence, Buyer determines that the Property is not suitable for Buyer's needs, Buyer may, prior to the expiration of the Due Diligence Period, terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of Paragraph 31 of this Agreement. In the event that Buyer has not provided Seller with written notice of Buyer's intent to terminate this Agreement prior to the end of the Due Diligence Period, this Agreement shall remain in full force and effect in accordance with the terms and conditions as more fully set forth in this Agreement."
