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Typical time period for due diligence

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  • Typical time period for due diligence

    What is the usual time allowance for due diligence in NC?

  • #2
    Well as someone who has been involved in North Carolina real estate much longer than the Due Diligence concept has been around, I can tell you that there is absolutely no "typical" or "usual" time standard. It truly is whatever the buyer and seller can negotiate in terms of time and fee.

    Without writing a dissertation on the subject (which I could), I will tell you that it often depends on the savviness of the people involved. For example, sure, actual due diligence on a property may take, maybe, three weeks. But a buyer may ask for more time for other reasons which have nothing to do with due diligence. For instance, another property that must first be sold. Another example: A seller may agree to a Due Diligence Fee equal to, say, one month's mortgage payment in exchange for a 30-day Due Diligence Period. But the seller could also negotiate a higher figure to ensure that the buyer does not, or cannot afford to, terminate regardless of the outcome of the actual due diligence.

    Finally, I will also add that very few people understand the ramifications of the Due Diligence Period and Fee. This includes most real estate agents.


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