What is due diligence & earnest money?

In short, due diligence and earnest money are fees you pay upfront when you enter a contract to buy a home from a seller. These funds tell them you are serious about your commitment to purchasing their home.

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

Unlike the earnest money deposit, the buyer pays the due diligence fee (usually between 0.1% – 0.5% of the house’s purchase price) directly to the seller. The fee starts the clock on the due diligence period. During that time, the seller agrees to take their home off the market (usually 14 – 30 days) while the buyer schedules a home inspection (s).

What is due diligence money & earnest money in North Carolina?

North Carolina law allows due diligence money and earnest money to be negotiated as part of the home buying process. Once you have found the perfect home and the seller accepts your offer, due diligence money and earnest money will be negotiated and paid by the buyer as a sign of good faith.