Do you dislike having to put down money that you can lose just to inspect a house? I don’t blame you. I don’t like it either. I am going to explain what is wrong and what you can do about it.

I am Jodi Bakst with Real Estate Experts. If you want to talk about Due Diligence in North Carolina or about home buying and selling strategies, email me at [email protected] or click the calendar link below and schedule a time to talk.

There are two things that are unfair about due diligence money.

First, in North Carolina you have to put money down that is at risk just because you put a house under contract and have inspections done. When this provision started, it was meant to be about as much as a mortgage payment. It has morphed into a negotiation tactic and buyers are putting down – or are having to put down to compete – enormous sums of money that is at risk.

Second, the property disclosure laws in North Carolina are minimal. Very few sellers do pre-sale inspections and sellers are allowed to check No Representation on the property disclosure form.

This means buyers have to put down a sizeable chunk of money to go under contract without knowing much about the property. Some sellers are better than others about disclosing things about the property but often times there is little to no information.

The North Caroliina contract is also TECHNICALLY an as-is contract so there are no guarantees a seller will negotiate and make repairs. If you need to back out (or terminate) on or before the due diligence date you will lose your due diligence money (your earnest money is protected).

As a consumer if you don’t like the North Carolina due diligence process, you have to complain to the North Carolina Real Estate Commission and the North Carolina Association of Realtors. They do not care what we as Realtors have to say. I have complained enough about this. These organizations protect Consumers. They need to hear from you! This is the only way this will every change.