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Due Diligence Period in NC?

Discussion in 'Getting to the Closing Table' started by JBob, Jun 10, 2012.

  1. JBob

    JBob Knows the Ropes

    Jun 9, 2012
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    Can a buyer really walk away during contract for no reason now?
    How is that fair?
     
  2. Del Shannon

    Del Shannon TREF Member

    Jun 7, 2012
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    I don't understand this "due diligence period."
     
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  3. JBob

    JBob Knows the Ropes

    Jun 9, 2012
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    It seems to confuse a lot of people. What is the point of making a contract with the due diligence? Just to break it?
     
  4. rabbit

    rabbit TREF Member

    Jun 14, 2012
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    Well, if inspectors find issues or the homeowner is hiding something, isn't it fair for the buyer to be able to walk?
     
  5. Ronnie

    Ronnie TREF Member

    Jun 17, 2012
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    Sure. if the inspection shows damage, buyer should be able to walk. Who wants to buy a house in bad shape?
     
  6. He's got game

    He's got game TREF Member

    Jun 25, 2012
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    If sellers would fix stuff there would be less trouble.
     
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  7. Jammer

    Jammer TREF Member

    Jul 1, 2012
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    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 likes this.
  8. Clarice

    Clarice TREF Member

    Jun 17, 2012
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    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.
     
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  9. Chuck Finley

    Chuck Finley Knows the Ropes

    Jul 27, 2013
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    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.
     
    Jammer likes this.
  10. Good Wife

    Good Wife TREF Member

    Jul 1, 2012
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    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...
     
  11. Frances Farmer

    Frances Farmer TREF Member

    Jun 7, 2012
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    Maybe if sellers would have inspections done and fix things before they list their home, they could avoid surprises during the due diligence periods.
     
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  12. Chuck Finley

    Chuck Finley Knows the Ropes

    Jul 27, 2013
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    ^^^^^ this!
    In my brother's case, maybe the sellers could have avoided the problems with due diligence if they had.
     
  13. Jammer

    Jammer TREF Member

    Jul 1, 2012
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    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:
     
  14. Avril

    Avril TREF Member

    Jul 1, 2012
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    What happens if the due diligence period is coming up and we still don't have our appraisal back?
     
  15. adele

    adele Knows the Ropes

    Jun 9, 2012
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    We just decided to get back in the market before rates go any higher. This Due Diligence thing is SO confusing.
     
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  16. Mike Jaquish

    Mike Jaquish Owner, Realty Arts
    Staff Member

    Jun 6, 2012
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    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.
     
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  17. Good Wife

    Good Wife TREF Member

    Jul 1, 2012
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    What can a buyer do if the seller doesn't agree to an extension?
     
  18. Jammer

    Jammer TREF Member

    Jul 1, 2012
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    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.
     
  19. JBob

    JBob Knows the Ropes

    Jun 9, 2012
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    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.
     

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