Negotiating Proper Diligence Periods: A Game Changer for Buyers and Sellers

Josh Perez • November 15, 2024

As a real estate professional, I’ve seen my fair share of buyers struggling to navigate the pressures of making offers, especially in competitive markets. One recurring challenge is the limited diligence period in conditional offers—often shaped by competing bids or a seller’s urgency. Let me share some thoughts on why negotiating the right diligence period matters and how working collaboratively can make all the difference.

" You just got to ask the right questions, and then you have to be working with people that are willing to do that."

Why the Diligence Period Matters

The diligence period is critical because it gives buyers the time they need to evaluate the property thoroughly, arrange for financing, and ensure everything aligns with their goals. Yet, I often see buyers pushed into accepting two-week conditional periods—or worse—none at all. It’s a recipe for gut decisions that leave everyone feeling uneasy.

But here’s the thing: the “two-week rule” isn’t set in stone. When I work with clients, I focus on understanding why the timeline matters to the seller. Are they worried about the deal falling apart? Do they have concerns about another buyer coming through? Once you unpack the reasons behind the deadline, you can negotiate a more realistic timeframe that benefits both parties.


Avoiding the Pressure of Snap Decisions

When I collaborate with trusted agents or advisors, it’s a completely different experience. Instead of rushing to fit into an arbitrary timeline, we strategize to ensure that both parties feel confident about the deal. For example, one of my colleagues mentioned how seamless it feels when we work together. They’re not constantly calling me, panicked about whether we’ll meet some unrealistic deadline. Instead, we align on expectations upfront, ensuring buyers aren’t forced into gut decisions.


Asking the Right Questions

A key part of navigating these challenges is asking the right questions.


If a seller insists on a two-week conditional period, I dig deeper:


  • Why is the timeline so critical?
  • What assurance do they need to feel confident in the deal?
  • What can we provide upfront to bridge the gap?


In many cases, it’s not about the timeline itself but about the seller’s fear of wasting time on a deal that might collapse. Addressing these concerns upfront—whether by providing financial assurances, clear communication, or creative solutions—often leads to better outcomes.


Strategizing for Success

Take the example of a 30-unit property we recently worked on. The buyer had specific needs, and the seller had certain expectations. By sitting down and strategizing offline, we pinpointed what was critical to both sides and crafted an approach that worked. We didn’t rush to meet arbitrary deadlines; instead, we focused on creating comfort and trust between all parties.


The Bottom Line

Whether you’re a buyer, seller, or agent, the diligence period isn’t just a box to check—it’s an opportunity to ensure the deal works for everyone. By asking the right questions, building strong relationships, and approaching negotiations thoughtfully, we can create an environment where no one feels pressured to make snap decisions.

If you’re navigating the complexities of conditional offers and want a team that prioritizes due diligence and clear communication, let’s connect. Together, we’ll strategize a plan that ensures confidence every step of the way.


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By Josh Perez February 18, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
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