Exactly how does the "due diligence" period work in Georgia?

By
Real Estate Broker/Owner with Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 GREC# 169695

Let me explain this to you.... the due diligence period in Georgia is a NEGOTIATED number of days in which a buyer can back out of a contract for ANY reason or NO reason at all.  On midnight of the last day of due diligence... it's OVER, it's gone, you can't send over an amendment to address concerns at 11:59 p.m. and have three more days to negotiate.  It's still over. Period.  The. End.

See there under item (3) Notice of Decision Not to Proceed: if you don't terminate by the end of the last day of due diligence and instead send over an amendment to address concerns at the 11th hour it still doesn't stop the due diligence period from ending at the same time.  It does NOT give you more time.  If YOUR agent told you otherwise, they would be wrong.  It's NOT subjective or up for re-negotiation.  You agree to any amendments OR terminate prior to the end of due diligence.

Pretty simple right?  Except time and time again we have buyers and buyers agents wanting to pretend that just because they faxed something to our office right before Cinderella's carriage turned into a pumpkin that gives them more time to terminate and be refunded their earnest money. 

It's important to hire a buyer's agent who understands the contract and how it works.  Otherwise you've just been represented poorly and lost your earnest money if you try to terminate the morning after your due diligence ended. You can't simply change the rules or change the date.  Those dates are vital and cannot be missed. When we represent clients the "dates" of end of due diligence, finance contigency end dates, must apply for mortgage by dates, closing dates, walk through dates are all entered into our calendar... google, outlook and even that paper calendar on the my (the broker's desk) to remind agents to remind clients of when those days are ending.

Is your agent actually looking out for your interests? If they are not, it might be time to consider a new agent.

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Rainmaker
1,161,662
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

That's why you are the agent of choice in Lake Sinclair. Your buyers and sellers are going to be well represented. Nothing is going to fall through the cracks.

Oct 29, 2014 06:06 AM #3
Rainmaker
1,026,929
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Excellent explanation and a great illustration as to why smart Lake Sinclair home buyers will come to you if they wish to be well represented.

Oct 29, 2014 06:18 AM #4
Rainmaker
1,728,464
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Tammy ...You are the go to agent for representation in Lake Sinclair ....You do a great job! Very few ever explain what this means ....Very nice post ...Have a great rest of the week.

 

 

Oct 29, 2014 06:54 AM #5
Rainmaker
925,699
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

It is always smart to have an informed broker or agent on your side in any real estate transaction, and Tammy Lankford Baker is that broker.  Nicely done, Tammy!

Oct 29, 2014 06:56 AM #6
Ambassador
2,855,489
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Anna Banana Kruchten it's a really bad lesson for the buyer

Jerry Newman exactly my point

Jane Peters too late for the buyers that inspired this post though

Thank you Susan

Rob Thomas I am doing a series of contract/buyer posts that will eventually be a page on my site for buyers

Ron Marshall thank you. :)

Oct 29, 2014 07:08 AM #7
Ambassador
3,080,753
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I've heard about due deligence periods and it is totally foreign to me.  We have contingencies specific to events, not a large blanket period.

Oct 29, 2014 08:22 AM #8
Rainmaker
335,561
Jenna Dixon
DRA Homes | Cobb County Real Estate - Marietta, GA
Empowers You With a Better Real Estate Experience

Very well explained, Tammy.  Now could you spread the word a little more in my area?  I am hoping for Lake Sinclair buyers to send your way, I know they will be in great hands.

Oct 29, 2014 08:27 AM #9
Ambassador
2,855,489
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Chris Ann Cleland it's still fairly new to Georgia... 2008 if memory serves me, and apparently some agents still aren't taking a contract class annually so they understand it.

Jenna Dixon as it just so happens, this was also an agent not familiar with my lake who really should have referred buyers... they work much closer to you than my lake.

Oct 29, 2014 08:35 AM #10
Rainmaker
335,561
Jenna Dixon
DRA Homes | Cobb County Real Estate - Marietta, GA
Empowers You With a Better Real Estate Experience

How dare they dip their Atlanta toes into your faraway pond?  RUDE!

Oct 29, 2014 08:45 AM #11
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

You know Jenna Dixon if they had attended inspections, measuring appointments ect... I might not have such a bad attitude, but they basically showed once, wrote an offer then bailed on their "clients"  I'm happy to co-op on our listings so long as the agent is willing to do their job.

Oct 29, 2014 09:12 AM #12
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Can you belive it Tammy, there is no due diligence period in our Tennessee contracts? The only outs are the inspection, appraisal and financing contingencies if they are used. But we know a buyer can make any of these work for them to terminate a contract if they so desire.

Oct 29, 2014 10:57 AM #13
Rainmaker
648,329
Christine OShea
Christine E O'Shea Real Estate Broker - Naples, FL

In NJ we had a three day attorney review, sometimes they would get extended.   Here in FL we go straight to contract and no attorney review or I suppose Due Diligence!

Oct 29, 2014 11:34 AM #14
Ambassador
2,855,489
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Debbie Reynolds I tend to like the way Texas and NC do it where the buyer pays the seller a non refundable negotiated amount, nothing like a little money on the line to make you keep your word.

Christine OShea I can't imagine having to learn a new state rules and law and customs.

Oct 29, 2014 12:38 PM #15
Rainmaker
1,762,811
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

This is just another example of why I need agent representation in my real estate transactions Tammy!

Oct 29, 2014 01:03 PM #16
Rainmaker
1,675,316
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi Tammy, Due diligence is something that must be clear to all buyers when signing the purchase contracts.

Oct 29, 2014 01:07 PM #17
Rainer
389,343
Anna Hatridge
Goodson Realty - Farmington, MO
Missouri Realtor with Goodson Realty

Great post!  Due diligence is a basic concept in Missouri.  As the buyer's agent, due diligence is owed to the the buyer.  If we don't preform it is our license on the line.

Oct 29, 2014 11:58 PM #18
Rainmaker
2,773,771
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Tammy, I see it in my market as well. It all stems from agents not understanding the contracts or how they work. They do their clients a tremendous disservice in the process.  Hiring the right agent is key!

Oct 30, 2014 07:15 AM #19
Rainmaker
593,126
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

Yes...the 11th hour surprises...funny, but not the 1st time.

The other angle with these due diligence periods is that it's the Buyer's choice and election, not the Seller's.  I've had Seller who'd not fully understood this minor fact.

Oct 30, 2014 02:42 PM #20
Ambassador
2,855,489
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Claude Labbe ah yes, I've written "that" post too, where the seller thought they could take a better offer because of the "due diligence" period.  hahahaHA

Kathleen Daniels you sure do need to hire the right agent.  wrong agent can really mess up your deal.

Anna Hatridge interesting

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366 same goes for me with repair work.  I'm NOT a do it yourself kind of girl when it comes to fixing most things.  

Larry Johnston that's how it's supposed to be.  I discover time and time again is is not though.  

Nov 01, 2014 04:15 AM #21
Rainmaker
593,126
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

as I read you're comment, since it's still Halloween w/e, I can see/hear you doing the hahahaHA in a wicked witch voice.

you know...

Nov 01, 2014 11:10 AM #22
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