Extending the sale time for a buyer to complete due diligence during a commercial sale is common, LJ Hooker real estate agent Stephen Robertson says.
The Oamaru Whitestone Civic Trust delayed the sale of Oamaru’s railway station by 20 days to allow the conditional buyer to complete due diligence on June 22.
Mr Robertson said due diligence delays happened frequently during commercial sales, especially for the purchase of buildings pre-dating 1940.
Buyers could often experience problems with insurance, meaning delays were necessary, he said.
There could be a number of other reasons for due diligence, which might include completing building reports or satisfying legal requirements, however he could not comment on the exact details relating to the sale of the railway station, he agent said.
“It means that the buyer’s satisfying all the requirements that they feel necessary before they buy.
“We’re just following procedure.”
The trust received a conditional offer on May 22 from a North Island buyer who has a heritage background.
The property is a category two historic building and under the sales agreement, it cannot be demolished and the exterior features and appearance must remain the same.
The railway station, which was built in 1900, was designed by the New Zealand Railway Department architect George Troup, which also designed the Dunedin Railway Station.
By RUBY HARFIELD