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The amount of time where you can get out of a Purchase and Sale Agreement and still get your Earnest Money Deposit back is specified as the ?Due Diligence? period in Georgia (Florida calls this an ?Inspection Period?). Essentially, the Due Diligence period is the first few days after the contract becomes binding.
?Days? in the PRDS Contract and Notice to Perform Calendar days are counted as ?Days? except for initial deposit issues. If the last day for performance falls on the weekend or a holiday, then the last day to perform is extended to the next regular business day.
It is during this time that the buyer and seller agree to allow the buyer to inspect the property before closing the sale. In other words, it ensures you, the buyer, are getting what you're paying for, and that your lender is comfortable funding your purchase.
Due diligence provides the homebuyer with time to see if a property meets with his or her expectations. In California, a due diligence or contingency period is allowed for sellers to deliver disclosures in seven days. The buyer has 17 days to complete any inspections and apply for financing.
In Georgia, it has become customary over the years to include an all encompassing due diligence period commonly lasting 10 to 14 days. Buyers are advised to use the period to inspect every single element of the purchase transaction, since objections which are raised later could result in forfeiture of earnest money.
Ing to a recent survey, the average cost for due diligence services is around $50,000. However, these costs can vary widely depending on the specific services needed, with some firms spending as much as $150,000 on due diligence professionals. Another significant cost associated with due diligence is travel.
A day is also the entire day. So, for example, if a person has a ten (10) day Due Diligence Period from the Binding Agreement Date, it would end at midnight on the tenth day after the Binding Agreement Date.