The Legal Hotline is getting reports that buyer reps are not using DUE DILIGENCE correctly.  This can increase the risks for the buyers rep to get sued, face ethics charges, and face license law violations.

While there is no way to force a seller to respond to the repair request in DUE DILIGENCE (SCR311 due diligence addendum attached to SCR310 base contract), the buyer may choose to put an expiration on the SCR525 Repair Request that is prior to the end of the DUE DILIGENCE PERIOD.

WARNING:  Ensure the due diligence period is long enough for buyer inspections.

WARNING:  Ensure that the expiration date on the SCR525 gives the seller enough time to get repair estimates (contractors get busy in hot markets and may need lead time for appointments) and leaves time for sellers/buyers to negotiate repairs.

WARNING:  Buyer reps reportedly mistakenly believe that by making the SCR525 expire after the DUE DILIGENCE period that the buyer rep has unilaterally extended DUE DILIGENCE period.  Do not try this.  This is a bad idea.

When making the SCR525 expire prior to the due diligence deadline and should the seller not respond, the buyer can then choose to

(1) terminate – timely/properly with written delivered notice of termination SCR313 and any agreed upon DUE DILIGENCE termination fee money


(2) buy AS IS which is defined in the SCR311 and occurs when the buyer does not timely/properly terminate under DUE DILIGENCE.  Maybe the house is the buyer’s dream home or a good deal irregardless of the repairs not being made by the seller.

Even under repair procedure, the seller might fail to timely/properly respond.  There is never a way to FORCE sellers to respond.

The SCR311 due diligence addendum means that the repair procedure is not applicable to the contract.