What Are the Due Diligence Fee and Period in North Carolina?
A Guide for Buyers and Sellers
Hello, I’m Sandra, your real estate expert in North Carolina. Today, I want to explain the Due Diligence Fee and Period, two critical aspects of buying and selling real estate in our state.
What is the Due Diligence Period?
The Due Diligence Period is the time granted to a buyer after signing the purchase agreement to thoroughly evaluate the property. During this phase, the buyer has the opportunity to conduct inspections, secure financing, and ensure there are no legal impediments. This period is typically negotiable and is agreed upon between the buyer and seller in the purchase agreement.
What is the Due Diligence Fee?
The Due Diligence Fee is an amount paid by the buyer directly to the seller to take the property off the market during the Due Diligence Period. This fee is generally non-refundable and serves as a sign of the buyer’s serious interest. The amount of the fee can vary and is also stipulated in the purchase agreement.
Why are these aspects important?
For buyers: The Due Diligence Period gives you the necessary time to check all aspects of the property before making a final commitment. It’s your chance to ensure everything meets your expectations.
For sellers: The Due Diligence Fee provides some assurance that the buyer is seriously interested and will not withdraw from the purchase without a valid reason.
As your real estate partner, I want to ensure that you, as both a buyer and a seller, are well informed and can navigate the process clearly and safely. Do you have questions about this topic or need more information? Don’t hesitate to contact me!