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If you’re moving to North Carolina from another state, you may be surprised to learn that we have something called a Due Diligence Fee.
This is a non-refundable fee paid by the buyer directly to the seller at the time a contract is accepted.
What does the Due Diligence Fee do?
The Due Diligence Fee gives the buyer the right to investigate the property during the due diligence period. This includes inspections, reviewing disclosures, evaluating financing, appraisal concerns, and any other research a buyer wants to complete.
During this time, the buyer can walk away from the contract for any reason at all.
If the buyer decides not to move forward, the seller keeps the Due Diligence Fee. This compensates the seller for taking their home off the market while the buyer completes their investigations.
Why does North Carolina use this system?
North Carolina adopted the Due Diligence Fee to reduce disputes and lawsuits between buyers and sellers. It clearly defines each party’s rights and responsibilities and helps ensure transparency throughout the transaction.
How is this different from Earnest Money?
- Due Diligence Fee
- Paid directly to the seller
- Non-refundable
- Compensates the seller for time off the market
- Earnest Money Deposit
- Held by a neutral third party
- Typically refundable if the buyer terminates during due diligence
How do we approach Due Diligence?
There is no “one-size-fits-all” amount.
- For buyers, we focus on protecting your financial risk while still making your offer competitive.
- For sellers, a stronger Due Diligence Fee often signals a serious, committed buyer.
The key is finding the right balance — one that protects the seller’s time while giving the buyer the flexibility to make an informed decision.
Why guidance matters
Due Diligence is one of the most important — and misunderstood — parts of a North Carolina real estate contract. Having the right strategy can protect you from unnecessary risk and help your transaction move forward smoothly.
Our role is to educate you, guide you, and help you make confident, informed decisions every step of the way.
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