The due diligence period is the period of time the buyer has to investigate the property. This is the most critical moment during a real estate transaction. In the state of North Carolina, a buyer can back out of the deal for no reason, or any reason at all, and still have their earnest money deposit returned back to them without penalty.
For sellers, this means that you must negotiate a reasonable amount of money inside what is called the due diligence fee. The due diligence fee is the money that the buyer gives to the seller for the period of time they will be investigating the property for. The due diligence fee is a non-refundable deposit if the buyer decides to back out the deal. However, if the buyer closes then the due diligence fee is refunded to them.
The due diligence fee is just as important as the earnest money deposit. In fact, it's probably more important, as it is the only funds the seller would receive should the buyer back out of the transaction during the notorious due diligence period.
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