What is a Due Diligence Period?

What is a Due Diligence Period

What is a due diligence period in a real estate contract? It’s the negotiated period 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 the return of their earnest money. Can the Seller cancel during that time as well? NO!

My client Amy was under contract on an older home. It had foundation issues, and she decided not to proceed with the purchase of the house. Because we terminated the contract within the due diligence period, her earnest money was returned to her in full, with 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.

Buying a Home? The Due Diligence Period in Real Estate

The Due Diligence Period in a Real Estate Contract

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.

What You Need to Know About Due Diligence

What You Need to Know About Due Diligence

When you buy a home, there may be phrases or terms that you may not know. Today we’re going to talk about the due diligence period. Due diligence is a term every buyer needs to understand before signing a contract.

Due diligence is the negotiated amount of time at the beginning of a sales contract that allows the buyer to walk away for no reason at all. It is intended to do inspections, an appraisal, etc. If the buyer terminates during that period, their earnest money is always returned to them. Typically, due diligence is 10 – 14 days, or as low as seven or even zero in a competitive situation. It’s best to take the due diligence period and its requirements very seriously. Make sure you hire a strong agent who will protect your money during due diligence.

I’m a good referral for your brother, who really wants to be in Florida. Tell him an introduction to Renee will get him on his way.

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