CARY NC What is a Due Diligence Fee?
CARY NC What is a Due Diligence Fee? Â The state of North Carolina recently adopted a Due Diligence Contract.Â 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 Buyerâ€™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.
InÂ 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.Â The Buyer has a negotiated number of days to investigate the
property.Â If the Buyer decides to buy, the Due
Diligence funds are credited at closing.Â If the Buyer
decides not to buy the Seller keeps the Due
Diligence funds.Â The home remains ON the market during the
Due Diligence period.Â It is marketed in the MLS as â€œActive-Due
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