The Real Estate Process, Home Buying and Selling Tips

The Due Diligence Fee: Non-Refundable and Very Unpopular with Lake Norman Home Buyers

Due Diligence Fee and Period for buying a home

 

In January of 2011 the North Carolina Association of Realtor’s completely redesigned the Offer to Purchase forms to be used when buying and selling single family homes in our state.  One of the hardest things to explain or justify to out-of-state buyers particularly is the non-refundable “Due Diligence Fee”.

So what is the Due Diligence Fee?  In short, it is a non-refundable fee that is given to the seller at the “effective” date of the purchase contract which is the day the agreement is signed and delivered back to the buyers or buyers’ agent.  If paying by check, the buyer makes the check payable directly to the seller.  It does not pass go nor go to an escrow account. The seller keeps it no matter what.  The good news is that this fee is negotiable and does get applied to the total purchase price. Continue reading

Standard