Many home buyers are unfamiliar with the term Due Diligence when they set out to buy a home. What is the Due Diligence period in a real estate contract? It’s the negotiated amount of time for buyers to do inspections, quotes, etc. to make sure they want to buy the house. Typically lasting 10 -14 days, it allows the Buyer to Cancel with NO PENALTY and get the return of their earnest money. Can the Seller cancel during that time as well? NO!
My client Alice was under contract on an older home. It had foundation issues, and she decided not to proceed. Because we terminated the contract within the Due Diligence period, her earnest money was returned to her in full, no penalties.
I’m a good referral for your friend Sam who’s been burned in a real estate purchase before. Let him know you know an experienced agent that will protect his money and his time.