When looking to purchase a home, it is important to understand the process. Contract’s and processes vary from state to state. In the North Carolina, buyers are often allotted a due diligence period to investigate the property, with out risk of loosing their earnest money. Earnest money is none refundable after the due diligence period has passed, but should a buyer choose to terminate the contract prior to the due diligence expiration, their money is generally refunded (depending on the exact terms of the contract). Sometimes sellers ask for a due diligence fee, which is a none refundable fee paid directly to the seller. This fee protects the seller in case you change your mind and cancel the contract.
According to section 4-f of the NC Offer to Purchase and Contract (NCAR 2-T): (f) Buyer’s Right to Terminate: Buyer shall have the right to terminate this Contract for any reason or no reason, by delivering to Seller written notice of termination (the “Termination Notice”) during the Due Diligence Period (or any agreed-upon written extension of the Due Diligence Period), TIME BEING OF THE ESSENCE. If Buyer timely delivers the Termination Notice, this Contract shall be terminated and the Earnest Money Deposit shall be refunded to Buyer.
If you’re interested in purchasing a home, it is important to choose a Real Estate expert who can help explain the processes, and guide you to appropriate legal consul if you need any documents interpreted. Contact us today if you’d like to learn more about purchasing a home in NC!