Due Diligence Period – Business Days ya Know
As mentioned last week, let’s walk you through some more Due Diligence Period details. You have an Accepted Contract and now you are on a countdown to get your Home inspected (3 or 4 inspectors for this one…you can have many more, depending on how bad off the home is you are thinking of purchasing). In this case we have 10 Business Days to get it all looked at and then make the Final Decision to:
- Stay the Course – meaning it all checked out and now you are going to closing.
- Counter Offer – maybe you found some issues and now you have this 10 Day period to get another offer on the table. This all has to take place BEFORE the end of the Due Diligence Period, else you are Going to Closing AS-IS.
- Walk Away – maybe you found something really wrong with the home, so you have the option to simply walk away. As long as you get your Notice of Termination (Form 313) and your Termination Fee (check written out to the Seller for their troubles of taking the home Off The Market). You will get your Earnest money back with no questions asked (in most cases as this is the law). You do have to provide a Disbursement Agreement stating from both parties (buyer and seller) who the Escrow Agent is to give the Earnest Money to (this is the final OK stating to Release the moneys). Oh, by the way……you can Terminate your Buying of the Home for ANY Reason as long as it is within the Due Diligence Period. If you get Cold Feet, or even if you don’t like the color of the car the Sellers drive…….Yes….any reason.
So right now you have been working with your Realtor® to get the Inspections scheduled. Your Realtor® would not really want to recommend anyone at this point, as there are legal issues associated with the What-Ifs. What if an Inspector missed a big issue for example..? Then you would be mad at the Realtor® for recommending them and take legal action. So it is best that YOU vet out ALL your contractors and/or Inspectors. The Realtor® could let you know who others have used in the past and give you a list for you to call and schedule yourself.
At this time (blog getting long), let’s say you have scheduled the Home Inspector, then the General Contractor and the CL100 (Termite, Wood Rot, Infestation, Mold, etc) Inspection. Next week we will go through them one by one. You also need to consider a Surveyor to come out and check property lines and elevation. Is your home in a Flood Zone (hello…you are in The Low Country…….almost everywhere is a Flood Zone….smile).