What is the difference between due diligence money and earnest money?

Due diligence and earnest money are both deposits made by the buyer to demonstrate a strong interest in purchasing the home. These funds also compensate the seller while the property is inspected and removed from the market. Neither due diligence money nor earnest money is required by law.

What is a due diligence fee & earnest money?

Both the due diligence fee and earnest money are paid in good faith by the buyer. These fees signify the buyer’s genuine interest and intention to purchase the property, indicating a strong level of commitment in the transaction process. This financial investment highlights the buyer’s seriousness and dedication to acquiring the property.

What is due diligence money?

Due diligence money is also a type of good faith deposit like earnest money. It’s generally meant to compensate the seller for taking the home off the market during the due diligence period.