In North Carolina we have an option to ask the buyer for “Due Diligence Money.” (DD) This is a non-refundable deposit aside from earnest money that is paid directly to the seller that the seller keeps regardless of whether or not the buyer terminates the contract before or after the due diligence period. If the deal closes then the due diligence money gets credited at closing towards the sale. The difference between EMD and DD can sometimes be confusing to buyers and sellers. As we go through the “offer to purchase” I will clearly explain the parameters of both items as they pertain to the offer and potential contract.
If you have any questions regarding real estate or contracts, please contact me any time.