Due Diligence Period in NC?

JBob

Knows the Ropes
Jun 9, 2012
25
8
8
38
Raleigh
#1
Can a buyer really walk away during contract for no reason now?
How is that fair?
 
Jun 7, 2012
10
4
3
#2
I don't understand this "due diligence period."
 

JBob

Knows the Ropes
Jun 9, 2012
25
8
8
38
Raleigh
#3
It seems to confuse a lot of people. What is the point of making a contract with the due diligence? Just to break it?
 

rabbit

TREF Member
Jun 14, 2012
11
7
3
#4
Well, if inspectors find issues or the homeowner is hiding something, isn't it fair for the buyer to be able to walk?
 

Ronnie

TREF Member
Jun 17, 2012
22
10
3
Around the Triangle
#5
Well, if inspectors find issues or the homeowner is hiding something, isn't it fair for the buyer to be able to walk?
Sure. if the inspection shows damage, buyer should be able to walk. Who wants to buy a house in bad shape?
 

Jammer

TREF Member
Jul 1, 2012
17
7
3
#7
If sellers would fix stuff there would be less trouble.

I sure agree with this. We had a contract and inspection and it seemed like lots of things were hidden. I was glad we had the due diligence period time to walk away. It could have been a nightmare.
 

Clarice

TREF Member
Jun 17, 2012
3
2
3
On the way to Cary
#8
that is how we felt.
sellers weren't agreeable people and acted surprised when they saw the inspection report. we bailed and i think it was for the best.
 

Chuck Finley

Poster to the Stars
Jul 27, 2013
35
25
18
Around the Triangle
#9
Due diligence period protects the buyer when the seller is playing "Hide and Seek" with the house.
It saved my brother from a huge mistake. He still had to pay for the appraisal and his home inspection, but at least he didn't make a $650,000 purchase mistake.
We think the sellers knew the issues and wanted to see if they would slip past the home inspection and due diligence period.
 

Good Wife

TREF Member
Jul 1, 2012
13
5
3
Cary
#10
I don't see how this due diligence period nonsense is fair.
Our buyer walked away without even giving us the chance to do repairs, just because it was still in the due diligence period.

Crazy...
 
Jun 7, 2012
17
13
3
Morrisville, NC
#11
Maybe if sellers would have inspections done and fix things before they list their home, they could avoid surprises during the due diligence periods.
 

Chuck Finley

Poster to the Stars
Jul 27, 2013
35
25
18
Around the Triangle
#12
Maybe if sellers would have inspections done and fix things before they list their home, they could avoid surprises during the due diligence periods.
^^^^^ this!
In my brother's case, maybe the sellers could have avoided the problems with due diligence if they had.
 

Jammer

TREF Member
Jul 1, 2012
17
7
3
#13
Due diligence period protects the buyer when the seller is playing "Hide and Seek" with the house.
It saved my brother from a huge mistake. He still had to pay for the appraisal and his home inspection, but at least he didn't make a $650,000 purchase mistake.
We think the sellers knew the issues and wanted to see if they would slip past the home inspection and due diligence period.
Maybe if sellers would have inspections done and fix things before they list their home, they could avoid surprises during the due diligence periods.

Ditto to both! We liked the due diligence period when we were buying. Of course, we may like it less one day if we decide to sell. :eek:
 

Avril

TREF Member
Jul 1, 2012
9
6
3
#14
What happens if the due diligence period is coming up and we still don't have our appraisal back?
 

adele

Knows the Ropes
Jun 9, 2012
48
18
8
Raleigh
#15
We just decided to get back in the market before rates go any higher. This Due Diligence thing is SO confusing.
 

Mike Jaquish

Owner, Realty Arts
Staff member
Jun 6, 2012
26
23
3
Cary, North Carolina
RealtyArts.com
#16
What happens if the due diligence period is coming up and we still don't have our appraisal back?

Avril,
When the appraisal is not returned, it is not unusual for a buyer to ask for an extension of the DD Period until the appraisal is returned. The seller doesn't have to agree, but it helps if the buyer has been consistently doing all the other things buyers do, like inspections, survey, etc, to help the seller know that the buyer is putting their best foot forward in the transaction.
 

Good Wife

TREF Member
Jul 1, 2012
13
5
3
Cary
#17
Avril,
When the appraisal is not returned, it is not unusual for a buyer to ask for an extension of the DD Period until the appraisal is returned. The seller doesn't have to agree, but it helps if the buyer has been consistently doing all the other things buyers do, like inspections, survey, etc, to help the seller know that the buyer is putting their best foot forward in the transaction.
What can a buyer do if the seller doesn't agree to an extension?
 

Jammer

TREF Member
Jul 1, 2012
17
7
3
#18
What can a buyer do if the seller doesn't agree to an extension?
We were going to walk away if they would not extend due diligence for appraisal, but then we decided the inspection was bad enough, so we walked away.
But, due diligence says you can walk away for any reason or no reason.
 

JBob

Knows the Ropes
Jun 9, 2012
25
8
8
38
Raleigh
#19
I thought due dilligence was a ripoff, and then a friend at work told us today about how bad an inspection was, and the sellers were fooling around.
And they just walked away, no questions asked. They are getting their earnest money check back. They will lose what they paid for inspection, but that is better than paying $400,000 for a house that the sellers were lying about.