Making an offer is exciting. But what happens between “under contract” and closing can feel unclear. In Georgia, the due diligence period is your short, negotiated window to investigate a home and decide if it is right for you. In this guide, you will learn timelines, fees, inspections, and how to use this period wisely when buying in North Druid Hills. Let’s dive in.
What the due diligence period is
The due diligence period is a set number of calendar days in your purchase agreement. During this time, you can investigate the property and, if your contract provides the right, terminate for almost any reason by giving written notice before the deadline. The specific rules come from your contract, often a Georgia Association of REALTORS purchase agreement.
Think of it as your “test drive” window. You order inspections, review documents, and decide whether to proceed, renegotiate, or cancel. Always read your exact contract language, because details vary by deal and negotiation.
Timeline North Druid Hills buyers can expect
- Day 0: The contract is ratified. You deliver the due diligence fee to the seller and earnest money to the escrow holder per contract deadlines.
- Due diligence length: Commonly 5 to 14 calendar days in metro Atlanta, but it is fully negotiable.
- Inspections: General and specialist inspections typically fit within 3 to 10 days if ordered quickly.
- Loan and appraisal: Loan and appraisal timelines are usually set separately, often 21 to 45 days.
- Closing: Many Atlanta-area contracts close in 30 to 45 days, but your contract sets the date.
Due diligence fee vs. earnest money
- Due diligence fee: A negotiated payment you typically pay directly to the seller when the contract is signed. It is usually non-refundable to you if you terminate, unless the seller breaches or your contract states otherwise.
- Earnest money: A good-faith deposit held by a closing attorney, title company, or listing broker. If you terminate within a valid due diligence period as allowed by your contract, you are typically entitled to an earnest money refund. If you cancel after due diligence without another contract basis, your earnest money may be at risk.
Always follow your contract’s exact wording on amounts, deadlines, and refund rules.
Inspections to prioritize in North Druid Hills
Homes in North Druid Hills are often mid‑century, which means systems may be older. During due diligence, consider:
- General home inspection covering structure, roof, plumbing, electrical, and HVAC.
- WDI/termite inspection.
- Roof or chimney specialist if age or condition is in question.
- Sewer scope, especially for older lines common in intown Atlanta.
- Radon test if desired.
- Structural engineer if your inspector flags movement or foundation concerns linked to Georgia’s clay soils.
- Flood and drainage review using flood maps and site conditions.
- Permit and renovation review through DeKalb County records, plus receipts and permits from the seller.
Attend the inspection if you can, or review the report quickly so you have time to get estimates and make decisions.
Negotiations during due diligence
Inspection results can lead to several paths:
- Request seller repairs with receipts and completion timelines.
- Negotiate credits, a price reduction, or closing cost help in place of repairs.
- Ask for documentation of past work and permits.
- Accept the property as is and proceed.
- Terminate within the due diligence period if you are not comfortable, following contract notice rules.
Use your contract’s inspection request and amendment forms. Any agreement on repairs or credits must be in writing and signed by both parties.
Appraisal and financing beyond inspections
Appraisal and loan timelines often extend beyond due diligence. If the appraisal is low, options can include renegotiating the price, you covering the difference, seeking reconsideration, or termination if a loan contingency allows. For loan denials or conditions, follow the notice and cure procedures in your contract.
Deadlines, notice, and how to cancel
Your right to terminate during due diligence depends on giving written notice before the deadline. If you miss the cutoff, you typically lose that unilateral right and could risk earnest money if you later cancel without another contract basis. Put all notices in writing and confirm delivery as your contract instructs.
Buyer checklist: use your days wisely
Immediately after ratification (Days 0–1):
- Deliver earnest money per the contract and pay the due diligence fee if required.
- Schedule a general home inspection right away.
- Line up specialists you expect to need, such as sewer, roof, or structural.
- Ask the seller for documents: utility bills, permits, inspection reports, and HOA materials.
- Send your lender all requested items to start underwriting.
During due diligence:
- Attend inspections or review reports the same day.
- Get written estimates for any flagged items.
- Review title information for easements, liens, and restrictions.
- Read HOA bylaws, covenants, budgets, and meeting minutes if applicable.
- Decide on repairs, credits, price changes, or termination, and submit requests in writing using the correct forms.
- If terminating, deliver written notice before the due diligence deadline.
After due diligence (if proceeding):
- Track appraisal and any loan conditions.
- Ensure agreed repairs are documented and scheduled.
- Confirm closing details with your closing attorney, lender, and agent.
Professionals to involve and when
- Real estate agent: From day one to manage deadlines, forms, and negotiation.
- Licensed home inspector: Within the first 1 to 3 days.
- Specialists: Roof, HVAC, plumbing, sewer, foundation as needed.
- Structural engineer: If foundation or movement concerns arise.
- Surveyor: If boundaries, encroachments, or additions raise questions.
- Real estate or closing attorney: For contract interpretation or title issues; Georgia closings use attorneys.
- Lender: Start immediately and stay ahead of document requests.
- Closing attorney or title company: Holds earnest money, runs title, and coordinates closing.
Local extras to review in DeKalb County
- Permits and records: Check DeKalb County for permit history on additions and major systems.
- Flood and drainage: Review floodplain data and observe lot drainage, even if not in a high‑risk zone.
- HOAs and covenants: Request governing documents, budgets, and minutes to identify rules or pending assessments.
- Utilities and services: Confirm providers, trash pickup, and any special tax districts.
- Commute and access: Test drive to Midtown or other job centers, and check MARTA access at typical commute times.
Move forward with confidence
The due diligence period is your best tool to uncover issues, negotiate fair solutions, and make a confident decision on a North Druid Hills home. Use your days with purpose, keep an eye on every deadline, and document all agreements in writing. If questions arise, lean on your agent, specialists, and closing attorney for clarity.
Ready for step-by-step guidance tailored to your situation? Connect with Ellen Cook for a calm, clear plan from offer through closing.
FAQs
What is Georgia’s due diligence period in a home purchase?
- It is a negotiated window in your contract that lets you investigate the property and, if allowed by the contract, terminate for almost any reason with written notice before the deadline.
How long is a typical due diligence period in Atlanta?
- Many contracts use 5 to 14 calendar days, but the length is fully negotiable and should match your inspection and scheduling needs.
What is the difference between the due diligence fee and earnest money in Georgia?
- The due diligence fee is usually paid directly to the seller and is typically non‑refundable, while earnest money is held in escrow and may be refundable if you terminate during due diligence per your contract.
Can I cancel my North Druid Hills home contract for any reason during due diligence?
- If your contract grants a general termination right, you can cancel for almost any reason by delivering written notice before the due diligence deadline.
Which inspections should North Druid Hills buyers schedule first?
- Start with a general home inspection, then add termite, sewer scope, roof or structural specialists, and radon testing as needed based on the home’s age and findings.
What happens if the seller refuses repairs after inspections in Georgia?
- You can negotiate credits or price changes, accept the property as is, or terminate within the due diligence period if your contract allows.
What if the appraisal comes in low in Georgia?
- Options include renegotiating, paying the difference, challenging the value, or terminating if your loan contingency provides that right.
What occurs if I miss the due diligence deadline in Georgia?
- You typically lose the unilateral right to terminate under that clause and could risk earnest money if you later cancel without another contract basis.
Who holds my earnest money in a Georgia purchase?
- Earnest money is usually held by a closing attorney, title company, or the listing broker, as specified in your contract.
