What Is Due Diligence in North Carolina Real Estate?
There's a lot of confusion — and frankly, a lack of understanding — among our out-of-state clients about what due diligence actually means. So let's get to the bottom of it.
In North Carolina real estate, the due diligence period is simply time and discovery for the buyer to make sure this is truly the home they want to buy. In exchange for that time, the buyer offers the seller money to take the home off the market.
This is the window when the buyer gets the home inspected, gets it appraised, gathers quotes, and does everything necessary to confirm this is 100% the home they love and want to close on.
What Happens to the Due Diligence Money?
The only way a buyer loses the due diligence money is if they decide to terminate the contract during that period. At that point, the due diligence deposit becomes the seller's property.
If the buyer continues with the purchase, that same money becomes part of what they bring to closing. For example: say a buyer plans to bring $20,000 to closing, and their due diligence deposit was $5,000. Instead of bringing $20,000 at closing, they'd only bring $15,000 — the deposit already paid counts toward it.
Need more clarification on due diligence, or on buying and selling in North Carolina generally? Reach out — we're happy to walk you through it before you're under contract, not after.
New to the Charlotte market or relocating from out of state? Contact us — we'll walk you through every part of an NC contract before you sign.
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