contracts
Due Diligence Fee and Period (North Carolina)
Under the Offer to Purchase and Contract (Standard Form 2-T), the buyer pays a due diligence fee directly to the seller for the right to terminate during a negotiated due diligence period. The fee becomes the seller's property at the Effective Date, is credited to the buyer at closing, and is non-refundable except for the seller's material breach or certain specified terminations. The separate earnest money deposit is held by the named escrow agent. Time is of the essence for the end of the period.
- Exam tip
- A broker never deposits a due diligence fee check payable to the seller; it must be delivered to the payee within three business days after acceptance.
- Example
- A buyer gives a $1,500 due diligence fee to the seller and $3,000 earnest money to the escrow agent; if she terminates during the period, she gets the earnest money back but not the fee.
Related terms & state variants
Sources
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Last verified: 2026-10-23