Code: Diligence Letter (Buyer’s attorney request letter)
Description: (Diligence Letter) is a written list of questions and document requests that a buyer’s attorney sends in a condo or co‑op purchase to check the legal and financial condition of the apartment and building before contract signing. It is part of the attorney due diligence phase and usually asks about violations, permits, insurance coverage, building finances, repairs, and other risks that could affect the buyer’s decision or price.
Practical Meaning: This means the buyer’s attorney is formally checking your apartment and building for legal and financial problems, and your answers can lead to new demands, repairs, or a change in deal terms. They will compare your replies with the title report, building documents, and city records (such as DOB and HPD) to see if there are violations, lawsuits, or money issues that must be fixed before closing.
Where You May See It: Email from buyer’s attorney, letter shared by your own attorney, sale checklist for a condo or co‑op, questions from the buyer’s bank, questions from the title company.
Why It Matters: If you ignore or answer a diligence letter poorly, the buyer may walk away, ask for a lower price, or insist that you clear hazardous violations, HPD problems, or insurance gaps before they sign the contract. A clear and complete response can help keep the sale on track, reduce last‑minute surprises, and show that you are acting in good faith as the seller.