Cary NC Moves Toward a "Due Diligence" Contract

It seems each year our market sees contract changes and this year is no exception as Cary NC moves toward a "due diligence" contract. The trend towards more buyer due diligence has been coming gradually in Cary NC.  A few years ago we adopted a "Alternate 2" form of doing inspections which allowed the buyer an "option period" during which a decision was made to move or not move forward.  Agents being human stuck to what they knew, NOT Alternative 2.

As of January 1, 2011 agents in Cary NC will no longer have a choice.  Our contract is all about buyer due diligence.

Highlights of the new contract:

• It is an unilateral contract during the due diligence period.  Meaning its all about the buyer until after the expiration of the due diligence period then the contract becomes a bilateral contract.

• Less emphasis on earnest money more on "due diligence" money.
• Due diligence money is a check made out to the seller by the buyer for an agreed upon amount.

• Due Diligence period is one of a "To Do" list for the buyer to inspect, appraise, and qualify for the property.
• Buyers will need to be pre-approved before contract otherwise loan approval can fall outside of the parameter of the due diligence period.
• Inspection timing will remain the same, within the first week - 10 days.
• Review documents pertaining to the property: restrictive covenants, bylaws, rules, regulation, both of the HOA and government.
• Insurance availability and affordability
• Appraisals will need to be conducted much sooner to guarantee the buyers rights in the case of a low appraisal.  
• Survey will also need to be conducted during this period, not the week before closing which is customary today.
• Check flood hazards
• Confirm zoning and governmental restrictions.

• Old contract contingencies that fall under due diligence:
• Inspections -pest/structural/mechanical
• Loan approval
• Appraisal
• Insurance ffordability and availability 

The new contract will allow buyers to completely investigate the property before being contracturally committed. 

 Buyer's Agents will become an even more valuable asset as they

 guide consumer through the process and protect thier due dilignece money.

 

Are you looking for a REALTOR that is:

• a former teacher that knows the schools system
  
• has lived in the area for over 15 years
• has expertise to get the job done?

                    Let me GOOGLE one for you!

Cary NC Moves Toward a "Due Diligence" Contract was first published on CaryRealEstateBlogger.com a blog by Linda Lohman

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