What is due diligence?
A due diligence fee, or DD, is paid directly to the seller in a real estate transaction and is due immediately after the execution of the contract.
You should consult your real estate agent on the amount because it depends on many factors.
This fee shows the seller that you are serious about buying the property.
It is then credited back to the buyer and can go towards the down payment on the house.
DD fees are non-refundable if the buyer backs out of the purchase, assuming the seller follows through with their promises in the contract.
Once the DD is accepted, the buyer enters the DD period allowing them time to appraise and inspect the property, secure financing, and review important information such as disclosures and financial and legal statements.
The difference between earnest money and due diligence is that earnest money is refundable to the buyer if they decide not to buy the home within the due diligence period.
If you have questions about due diligence or other mortgage needs, our team is happy to talk through different options.
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