What is a due diligence period?
If you are looking at buying or selling a property, you will probably hear the term “due diligence” come up. Nowadays, almost every real estate contract has a due diligence period in it. This is generally a ten day window, where the home inspection is done.
The home inspection is one of the most important things to consider when buying a property (I have talked on this topic before.) During this due diligence period, you are allowed to back out of the contract for any reason at all, and keep your earnest money. The reason for backing out doesn’t have to be related to the home inspection, but it generally is. That is your real estate education for the week; for more information on what a due diligence period is, or how to use it, feel free to reach out to me personally!
Written by: Robert Judy