Had an interesting scenario recently that I felt I should share. As you know our NC contracts come with a due diligence period. This is intended to allow the buyer to do inspections, complete loan process etc. One aspect of negotiations is the due diligence period and the amount of time the seller allows the buyer to essentially take the property off the market. Here is why:
Say Buyer Smith enters into a contract and both parties agree to a 30 day due diligence period. Buyer gives the seller $500 for due diligence fee and $5000 for earnest money deposit. ( this is not a good contract for seller by the way ). Things go along and on the 29th day the buyer sends a termination of contract and return earnest money deposit to the seller. As you can imagine, the seller is none too happy and refuses to sign.
However, while the seller may be trying to hold up the buyer getting his earnest money deposit the contract he/her signed has already implied an agreement to allow termination by agreeing to the due diligence period. It really does not matter if they sign the termination. The buyer will get his/her funds back. The attorneys with the Real Estate Commission have confirmed this to us as we recently dealt with this situation.
If you have any questions about this or other subjects, please email Roby
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