A due diligence period is a window of time — typically 14 to 21 days — after signing a contract of sale during which a buyer can conduct inspections, investigations and checks before committing fully to the purchase. Understanding what due diligence involves, what can go wrong, and how a Property Advisor helps you use this period effectively is critical for any property buyer in Australia.
What Happens During Due Diligence?
During a due diligence period, a buyer typically arranges: a building and pest inspection, a strata report (for apartments and units), council zoning and planning checks, title and encumbrance searches, flood and bushfire risk assessment, and a final review of the Section 32 vendor statement. In some states, due diligence is built into a cooling off period — in others, it must be negotiated as a special condition of the contract.
Due Diligence by State
| State | Cooling Off Period | Due Diligence Notes |
|---|---|---|
| Victoria | 3 business days | Section 32 must be provided before signing. Building inspection usually done before signing or as special condition. |
| NSW | 5 business days | Exchange is the trigger — cooling off begins on exchange. |
| Queensland | 5 business days | Longer due diligence clauses common — finance and building/pest standard. |
| Western Australia | None | Due diligence must be negotiated as contract conditions before signing. |
Common Due Diligence Mistakes
- Skipping the building inspection to save $600 — and discovering $80,000 in defects after settlement
- Not reading the strata financials and discovering a $45,000 special levy is pending
- Missing planning overlays that prevent the renovation or development they planned
- Not checking easements and rights of way that affect what they can build
How a Collings Property Advisor Helps
A Collings Property Advisor coordinates your full due diligence process — recommending qualified inspectors, reviewing reports, identifying red flags, and helping you decide whether to proceed, negotiate a price reduction, or walk away. Fixed fee $4,500 + GST.
Frequently Asked Questions
Can I get out of a contract during due diligence?
During a cooling off period — yes, subject to a penalty (typically 0.25% of the purchase price in Victoria). If you have negotiated a due diligence clause, the terms depend on the wording of that clause. A Collings Property Advisor will help you understand your rights before you sign.
What does a building inspection cost?
Typically $400 to $800 for a standard residential property in Melbourne. It is one of the best investments a buyer can make.
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