Buying a home - Part 2: due diligence and contract

Legal review addresses rights and restrictions; planning review addresses permits and use; physical review addresses condition; commercial review addresses price, finance and timing; and tax review addresses each party's potential liabilities, exemptions and assessments. A positive result in one does not cure failure in another.

If no obligation has yet arisen, a material finding may justify deciding not to contract. Once an obligation exists, unilateral exit is available only under the agreement and law; options may include a further document, condition precedent, cure, price adjustment, security or an appropriate remedy.

Seller representations do not replace documents, but they allocate responsibility. The agreement should define the property, price, payments, possession, taxes, clearances, breaches and remedies.

Payment milestones should be tied to protections suitable for the rights route: a caution note where available, or an appropriate alternative mechanism. Discharge, escrow and mortgage mechanics should align with the relevant bank and registry.

A memorandum, offer or acceptance message may form a binding contract, depending among other things on intent, specificity and the writing requirement for a real-estate transaction. A “draft” or “memorandum” label is not decisive by itself.

After signature, conditions, real-estate tax reports, finance and closing papers must be managed actively rather than waiting passively for possession.