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Dear Forms Committee: I heard that silence is no longer approval of property condition in the commercial sale agreement. Is that true?

Yes. In previous versions of the OREF Commercial Sale Agreement, if the buyer didn’t provide unconditional disapproval of the property before the end of the inspection period, the buyer was deemed to have accepted the property’s condition. After considering the typical procedure for conducting due diligence on commercial property, OREF’s Commercial Forms Committee revised the wording. It now says that the transaction automatically terminates if the buyer does not, before the end of the due diligence period, notify the seller that the buyer is satisfied with the due diligence performed on the property.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.