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North CarolinaNorth Carolina due diligence period: how it works

In the North Carolina Offer to Purchase and Contract (Form 2-T), the due diligence period is the time the buyer has to investigate the property and decide. The buyer may terminate for any reason or no reason by written notice before it ends at 5:00 p.m. on the last day. On a timely termination the buyer typically gets the earnest money back, but not the due diligence fee, which goes to the seller unless otherwise negotiated.

How the period is counted

  1. Calendar days

    Consecutive calendar days, starting the day after the Effective Date.

  2. Ends at 5:00 p.m.

    On the last day of the period.

  3. No weekend roll

    Weekends and holidays do not move the end of the due diligence period.

Due diligence fee vs earnest money

  1. Due diligence fee

    Paid to the seller. Nonrefundable unless the seller materially breaches, the buyer terminates under the seller-obligations or risk-of-loss paragraphs, or an addendum provides otherwise.

  2. Earnest money

    Held in escrow. When the buyer terminates within the due diligence period, the buyer typically gets it back.

Terminating during due diligence

  • The decision is the buyer's alone – for any reason or no reason; the seller's consent is not needed.
  • It must be in writing and delivered before the period ends.
  • After the period ends, the buyer's right to terminate for any reason is gone – the earnest money is then at risk.

Questions about the NC due diligence period

Does the NC due diligence period include weekends?

Yes – it counts consecutive calendar days, and a weekend or holiday does not move the end.

What time does due diligence end in North Carolina?

At 5:00 p.m. on the last day.

Is the due diligence fee refundable in NC?

Generally no – only if the seller materially breaches, the buyer terminates under the seller-obligations or risk-of-loss paragraphs, or an addendum says so.

Do I get my earnest money back if I terminate during due diligence?

Typically yes, if you terminate in writing before the period ends.

Do I need a reason to terminate during due diligence?

No. It is the buyer's unilateral decision, for any reason or no reason.

Calculate and compare

ClosingCode counts the North Carolina due diligence period the way Form 2-T does – 5:00 p.m., no weekend roll – and reminds the buyer's side before it ends.

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Sources: North Carolina Real Estate Commission bulletins "Due Diligence Questions and Answers" (2014) and "Due Diligence Fees: When Are They Refunded?" (2017); NC REALTORS® guidance on computing the due diligence period (Form 2-T).

General information, not legal advice. Use the dates and terms in your signed contract. ClosingCode is software; it is not a law firm or brokerage.