A due diligence period is a window of time after signing a property contract during which a buyer can conduct inspections, research, and investigations before committing unconditionally to the purchase. It is one of the most important protections a buyer has — and one of the most misunderstood.
What Happens During Due Diligence?
During the due diligence period a buyer typically arranges a building and pest inspection, reviews the Section 32 or vendor statement, checks council zoning and overlays, obtains a solicitor’s review of the contract, and arranges finance approval. In some states due diligence overlaps with the cooling off period.
Due Diligence Period by State
| State | Cooling Off Period | Due Diligence Period |
|---|---|---|
| Victoria | 3 business days | Negotiated — typically 7–14 days |
| NSW | 5 business days | Negotiated — typically 14 days |
| Queensland | 5 business days (includes due diligence) | Typically 14–21 days |
| Western Australia | None (private treaty) | Negotiated — typically 7–14 days |
Common Mistakes Buyers Make During Due Diligence
- Skipping the building inspection to save $500–$800
- Not reading the Section 32 carefully
- Failing to check council overlays for flood, heritage or bushfire risk
- Not getting finance formally approved before waiving conditions
- Relying on the vendor’s pest report rather than commissioning their own
How a Property Advisor Helps During Due Diligence
Collings Property Advisory guides buyers through the full due diligence process. We review building inspection reports, assess comparable sales to confirm value, check council records, and advise on whether the property represents fair value before you commit unconditionally.
Frequently Asked Questions
Can I pull out during due diligence?
Yes, if your contract includes subject-to conditions (finance, building inspection, due diligence) you can withdraw within the agreed period without penalty. Always confirm the exact terms with your solicitor.
What if I find something during due diligence?
Depending on what you find, you may be able to renegotiate the price, request repairs, or withdraw from the contract. A property advisor helps you assess the significance of any findings and negotiate accordingly.
Why Collings?
Our property advisors guide buyers through every step of due diligence. Fixed fee: $4,500 + GST — no commission, no conflict of interest.
Visit collings.com.au/portal to book a free advisory call.
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
