Due Diligence!

Post #4
Due Diligence!
Undoubtedly, this is the most important part after you’ve put a property under contract.

Its purpose is to determine whether the property is actually suitable for you, and whether there are hidden defects that the seller didn’t disclose, which you and your agent cannot see with the naked eye.

An important concept here is: A material fact.
In real estate, a material fact is a significant issue or defect about a property that could influence a reasonable person’s decision to buy, sell, or lease it, or the price they are willing to pay.

In other words, defects that could make you change your mind and cancel the contract—for example, flooding of the property, foundation problems, and more.

Most often, we focus on structural defects such as: electrical, plumbing, foundation, roof, and so on.

The due diligence period is determined in the offer you submit to the seller, and it is negotiable.

North and South Carolina are “as-is” states, meaning that you buy the property as it is, and the seller is under no obligation to make repairs. Moreover, North Carolina is a “buyer beware” state, meaning the buyer is responsible for discovering defects if they exist.

During this period, however, you are allowed to cancel the contract for any reason—or no reason at all.

Each state has its own laws regarding whether you might need to compensate the seller in the case of contract cancellation.

Do not skip an inspection, even for the septic system. Beyond finding out the true condition of the property, you and your agent can use the inspection report as a tool for further negotiation and potentially lowering the price.

I hope this helps clarify things for those who need it. For any questions, feel free to reach out to me privately 🙏🏻.