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The Due Diligence Period in North Carolina: What Every Buyer Needs to Know Before Closing the Deal !

So, you’ve found the one—that perfect home in Charlotte (or somewhere else in this beautiful state). You’re excited, nervous, and ready to make it yours. But before you hand over that earnest money and lock in your mortgage, let’s talk about one of the most critical parts of the North Carolina home buying process: the Due Diligence Period.

This isn’t just a formality. It’s your golden window to investigate the home, ask questions, negotiate repairs, and make sure this investment is really right for you.

What is the Due Diligence Period in North Carolina?

The Due Diligence Period is a negotiated timeframe—usually lasting between 14 to 30 days—that begins once a purchase contract is signed. During this time, the buyer has the unrestricted right to investigate the property and cancel the contract for any reason or no reason at all.

In exchange for this right, the buyer pays a Due Diligence Fee, a non-refundable amount (unless the seller breaches the contract) that shows the buyer’s serious intent.

Key Components of the Due Diligence Period

1. The Due Diligence Fee

  • This fee is paid directly to the seller and is non-refundable if you back out.

  • Think of it like a reservation fee to take the house off the market.

  • Typical Amount: Varies by market, but often $500 to $2,000+ in Charlotte.

  • If the deal closes, it’s credited back to you at closing.

2. The Earnest Money Deposit

  • This is separate from the due diligence fee.

  • It’s refundable if you cancel during the Due Diligence Period.

  • Held in an escrow account (usually by the closing attorney).

What Buyers Should Do During Due Diligence

This is the time to be proactive. Here’s what you should be handling:

1. Schedule a Home Inspection

  • Hire a licensed North Carolina home inspector to check for structural issues, HVAC, plumbing, roofing, and electrical systems.

  • If issues arise, you can negotiate repairs, request credits, or walk away.

2. Order Specialized Inspections (if needed)

  • Radon, mold, termite, septic, foundation, HVAC specialists, etc.

  • In North Carolina, radon testing is highly recommended, especially in the Piedmont region.

3. Secure Your Mortgage

  • Finalize your loan application and get your lender what they need.

  • Lock in your interest rate.

4. Review the Seller Disclosures and HOA Docs

  • Carefully read the Residential Property and Owners’ Association Disclosure Statement.

  • If applicable, request and review the HOA rules, financials, and fees.

5. Verify Property Boundaries and Permits

  • Hire a surveyor to confirm lot lines.

  • Research permits for past renovations or additions through the city or county.

6. Appraisal & Insurance Quotes

  • Your lender will order the appraisal, but you can compare homeowners insurance quotes and lock in coverage.

  • Also consider flood zone status, insurance history, and premiums.

7. Confirm Title Search and Closing Attorney

  • Your closing attorney will perform a title search to ensure there are no liens or issues.

  • They’ll also help guide you through closing prep.

What Happens If You Back Out?

If you walk away during the Due Diligence Period:

  • You lose your Due Diligence Fee, but

  • You’ll get your Earnest Money back.

If you back out after the Due Diligence Period ends:

  • You forfeit both the Due Diligence Fee AND the Earnest Money.

That’s why it’s critical to handle all investigations before the deadline. Once that clock runs out, you're locked in unless the seller breaches the contract.

Tips to Make the Most of Your Due Diligence Period

✅ Act fast. Schedule inspections immediately—slots fill up quickly in a hot market. 

✅ Ask for receipts and warranties. Especially for HVAC, appliances, roof, or renovations. 

✅ Budget for surprises. Inspections can uncover costly issues. 

✅ Communicate with your Realtor often. Don’t go MIA during this process. 

✅ Negotiate smart. Don’t just ask for repairs—sometimes it’s better to ask for a price reduction or credit and handle them yourself after closing.

The Bottom Line: Your Safety Net in Real Estate

The Due Diligence Period isn’t just red tape—it’s your time to get answers and protect your investment. As a buyer in North Carolina, you get a unique opportunity that doesn’t exist in every state, so take advantage of it.

Thinking about buying a home and unsure how the Due Diligence process works? I’m here to guide you every step of the way—from the first showing to the final signature. Let’s make sure you’re protected and confident when you’re under contract. Call, text, or DM me today 980-480-6480!


Until next week,


Evie DeJesus

Your favorite Charlotte Realtor®️

Search Homes in Charlotte





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