The "Due Diligence" period is a mutually agreed upon time period where the buyer must fully review and investigate the property and decide whether or not to proceed with the home purchase.
The length of time allowed and the fee for the period are negotiable and set after both the buyer and seller agree upon the details. After an agreeable time frame and amount are agreed upon, the buyer has basically purchased this period of time to decide whether or not to more forward with the purchase.
The buyers have the option to terminate the contract for any or no reason at all, completely at their discretion, before the time period has expired.
What is Typically Done Duruing the "Due Diligence" Period?
- Home Inspection
- Environmental Inspection
- Obtain Mortgage Approval
- Obtain Property Survey
- Investigate Neighborhood Covennants
- Obtain Repair Resolutions (if any needed)
- Verify Anything that IS or IS NOT Included in Sale of Home
If the buyer should decide AFTER the "Due Diligence" period has expired to NOT continue with purchasing the home/property and do NOT proceed to closing for ANY REASON, they are NOT entitled to a refund of their Earnest Money.