What Home Buyers Should Know About the New North Carolina Offer To Purchase
North Carolina Home Buyers - you have a due diligence period now...you need to know how to protect yourself and how to use this due diligence period.
When buyers make offers in North Carolina, they will now be purchasing an option to buy the property....this option time is your due diligence period. Before making an offer, you will want to have an idea of how long of a due diligence period you will need.
During this time you will want to do the following:
- Receive loan approval
- Have all appriasals completed and reviewed by underwriters (FHA/VA appraisals are the exception to this and are not tied to the due diligence period)
- Complete inspections
- Have the property surveyed
- Hire an attorney and prepare for settlement
If you are unable to receive loan approval by 5 PM on the due diligence date (time is of the essence), then you have the option of terminating the contract. With the new North Carolina Offer to Purchase, the buyer may terminate the contract for any or no reason within the due diligence period. The buyer will then receive a refund of the earnest money....NOT THE OPTION MONEY....Once you go under contract, the option money belongs to the seller. If you do close on the property, the option money amount will be credited to the buyer at closing.
The buyer can use an addendum to ask the seller for more "option time" but often the seller is going to want more option money.
Once the due diligence period is over, the buyer should be ready to close. Getting the money together for closing, transferring utilities, and completing the walk-thru should be the only items remaining. The settlement/closing date needs to be after the due diligence date in order to give the seller enough time to complete all agreed upon repairs.
Have more questions on the North Carolina Offer to Purchase?....Just ask Charlotte Real Estate Agent - Brandon Farmer