Due Diligence

Due diligence (DD) fees belong to the seller and are due on the effective date. There are only rare circumstances that will result in refunded DD fees to the buyer. DD fees are not required to form a contract in North Carolina but sellers may expect it for the trouble of taking their home off the market while the buyer conducts his inspections.

Lots of things to do during the due diligence period. This period should be long enough to afford the buyer time to complete all his inspections and obtain loan approval (if not a cash buyer). Ideally, if a buyer requires financing, best practice dictates that financing approval should be in the works prior to making an offer.