The due diligence period allows a buyer to discover all items that need to be repaired or that are of concern. The buyer will then decide if there are any larger repair items that he will ask the seller to fix before closing. With the help of their broker, the buyer has a variety of options to negotiate an agreement which he is satisfied with given the major discoveries of the inspection. If you haven`t bought or sold a resale house in NC since 2011, you may not have heard of due diligence (this is not the case with new constructions). This is a procedure in which a buyer hands over a non-refundable tax directly to the seller to have time to review, assess and do his “due diligence” to determine if he is closing the house. The amount of the tax is fully negotiable and is in addition for serious money deposit. The due diligence fee that the seller pays at the time of receipt is charged directly to the seller at the time of the contract change. Serious money deposit is still held by the trust agent as before (usually the real estate company representing the buyer or closing lawyer). During the inspection period (or due diligence period), the buyer may cancel for one reason or another. If the buyer cancels before the due diligence period expires, he has the right to recover his serious money deposit, but not the due diligence fee. After the expiry of the due diligence period, the buyer would also lose his serious money if he terminated the contract. When the buyer closes, he receives a credit for both due diligence and for the deposit of serious money on the account.

One possibility is that the seller simply agrees to repair or repair items at their own expense before closing. Another option is to ask the seller for a financial concession to obtain the necessary amount for the necessary repairs, in the form of acquisition cost assistance or a reduction in the purchase price. If these options are not feasible for both parties, there may be other aspects of the contract that can be negotiated. For example, sellers may agree to pay for certain repairs if buyers accept the seller`s preferred closing date. Once your offer is accepted, the house hunt is over and it`s time to start nudity inspections and repairs. This can be discouraging for many first-hand (and experienced) buyers, and therefore part of my job as a real estate agent in North Carolina is to help my clients cope with a stressful process. To be in good condition thanks to due diligence, you need to understand exactly what is going to happen, what money is at stake and when and what the options are at each stage of the process. Due Diligence replaces the possibility of repairing the past. At the old repair concession, if the dollar amount of repairs exceeded a predetermined amount, the purchaser could terminate the contract. What happens after your offer has been accepted? If you buy or sell real estate in North Carolina as soon as both parties sign the contract, you enter the due diligence period. (Most states have something similar, but the law and practice of real estate vary from state to state, so you should consult a local real estate expert near you!) A: “due diligence” is the possibility for the buyer to make, within a time frame agreed by the seller and buyer, the opportunity to continue the examination of the property and the transaction, as described in the “Offer to Purchase” form.