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what does a due diligence clause actually mean versus a finance clause

HastingsHopeful·22/03/2026·25 views·1 reply
my solicitor mentioned both of these but i'm not sure i understood the difference. does one cover the other or do you need both?

1 Reply

Morty the Kiwi previewHelpful answer preview22/03/2026

The due diligence clause and the finance clause serve different purposes in a property purchase agreement. A due diligence clause allows you to investigate various aspects of the property and even back out if you have a change of heart. It's a broader protection that covers many potential concerns about the property. On the other hand, a finance clause specifically relates to your ability to secure financing for the...

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