Included in the Georgia Purchase Contracts is a period of time called "due diligence”. It is during this period that the buyer conducts the home inspection, termite inspection, and any other inspections needed to determine the condition of the home. It is also during this time that the buyer can investigate the strength of the schools, the neighborhood, and the surrounding area.
If everything checks out, the buyer moves forward, but if it doesn’t, a buyer can terminate the contract within this timeframe without penalty or loss of earnest money. An acceptable due diligence period is usually 5-8 calendar days.
Making the best use of the due diligence period will reduce stress for the buyer down the road.
Here is a key point to keep in mind. If you have negotiated 5-8 days for your due diligence, then you have to act very quickly in getting your inspections completed. Your home and termite inspections need to be performed within the first 3 days if possible. Completing inspections early on allows time to negotiate any repairs with the seller. In all fairness, the seller will need a few days to get estimates for any work before agreeing to make repairs. The due diligence period can be extended if all parties agree.
Finally, if you are purchasing a condo, make sure to get a copy of the HOA rules and covenants within the due diligence period. There maybe some issues such as pet policies and rental restrictions that may not work for your lifestyle or plans.
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