CARY NC What is a Due Diligence Fee?
CARY NC What is a Due Diligence Fee? The state of North Carolina recently adopted a Due Diligence Contract. Basically the buyer fully inspects the home before committing.
My experience has been that both Buyers and Seller are having had difficulty with the concept of a Due Diligence fee.
So what is a Due Diligence fee?
The contract states:
A negotiated amount, if any paid by Buyer to Seller with this Contract for Buyer’s right to conduct Due Diligence during the Due Diligence Period. It shall be the property of the Seller upon the Effective Date and shall be a credit to Buyer at Closing.
In southern terms:
The agent and clients negotiate a small amount of funds, usually about $100-300, depending on the value of the home. A check is written to the Seller from the Buyer. The Buyer has a negotiated number of days to investigate the property. If the Buyer decides to buy, the Due Diligence funds are credited at closing. If the Buyer decides not to buy the Seller keeps the Due Diligence funds. The home remains ON the market during the Due Diligence period. It is marketed in the MLS as “Active-Due Diligence”.
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