Buying in Roswell can move fast. You tour a home, fall in love, and suddenly you are writing an offer. In Georgia, you have a powerful safety net built into many contracts that helps you slow down and verify the details before you commit. It is called the due diligence period, and when you use it well, it protects your time, your money, and your peace of mind. In this guide, you will learn what the due diligence period is, how it works in Georgia contracts, what to do during this window, and smart strategies for Roswell and North Fulton buyers. Let’s dive in.
What the due diligence period is
The due diligence period is a negotiated window in many Georgia residential purchase agreements that lets you investigate the home and decide whether to move forward. During this time, you can schedule inspections, review title and HOA documents, work on loan approval, and weigh the results. If you decide the home is not the right fit, you can usually terminate by the deadline set in the contract.
In Georgia, your rights come from the purchase agreement itself. Many buyers and sellers use the Georgia Association of REALTORS Residential Sale and Purchase Agreement and related addenda. The exact language you sign controls what you can do, the deadlines you must meet, and what happens with your deposits if you terminate or continue.
Key dates, fees, and how termination works
The dates you must know
- Effective Date or Date of Acceptance: the day both parties fully sign the agreement. The due diligence clock typically starts here.
- Due Diligence Deadline: the last calendar date and time to deliver written notice if you want to terminate and keep protections provided by this period.
Always confirm these dates at the start. Put them on your calendar and set reminders so you do not miss your window.
Due Diligence Fee vs Earnest Money
- Due Diligence Fee: a negotiated payment to the seller that you make for the right to terminate during the due diligence period. This fee is commonly nonrefundable if you choose to walk away.
- Earnest Money: a deposit held in escrow that is usually credited toward your purchase at closing. If you terminate properly within your contract rights and by the deadline, earnest money is typically refundable.
The amounts and timing for both are negotiable. In competitive markets, buyers sometimes offer a higher fee or a shorter window to strengthen an offer. In slower markets, buyers often request more time.
If you terminate or do not terminate
- If you deliver written termination before the deadline, Georgia contracts often provide that you can get your earnest money back. The seller usually keeps the due diligence fee.
- If you do not terminate by the deadline and later try to cancel for a reason that is not covered by another contingency, you may risk losing earnest money and could face a breach of contract claim.
Since the specific form governs your rights, review the exact wording in your agreement and addenda with your agent. When language is unclear, your broker’s legal team or a real estate attorney can help interpret it.
What to do during due diligence in Georgia
Home inspections first
Schedule a general home inspection immediately after acceptance, ideally within the first 48 to 72 hours. This gives you time to organize follow-up inspections and quotes before the deadline. Based on what the inspector finds, you may also order specialty inspections, such as:
- Termite or wood destroying insect inspection, which is common in Georgia’s climate
- Sewer scope or septic evaluation, based on property type
- Roof, HVAC, electrical, plumbing, or structural evaluations
- Chimney, pool and spa, or well water testing when relevant
For homes built before 1978, follow federal lead-based paint disclosure rules and procedures if applicable.
Title, survey, and records
Have your closing attorney or title company review the title commitment and exceptions. Address any liens, boundary questions, or easements early. If your contract permits or if the property warrants it, obtain a current survey or plat to spot encroachments or setback issues.
HOA documents and rules
Many Roswell neighborhoods include HOA communities. Review covenants, bylaws, rules, financials, and recent meeting minutes. Look for budget health, upcoming projects, special assessments, restrictions that affect how you plan to use the home, and architectural review processes for future changes.
Financing and appraisal coordination
If your contract includes a financing contingency, confirm your lender’s timelines and provide documents quickly. Schedule the appraisal as early as practical. If your contract does not include an appraisal contingency and the appraisal comes in low after due diligence ends, you may need to cover the gap between appraised value and purchase price to keep the deal together.
Insurance, flood, and municipal checks
Call your insurance agent for quotes and coverage options. Check if the home sits in or near a flood zone and what that means for insurance requirements and premiums. If there were additions or renovations, verify permits with Fulton County or the City of Roswell and confirm final inspections were completed when required.
Typical timelines and negotiability in Roswell
Due diligence periods commonly range from 5 to 14 days, with 7 to 10 days being a frequent middle ground. That said, the right length depends on market conditions and your needs. In a hot listing scenario, you may see shorter windows or even buyers waiving due diligence to compete. In a balanced setting, a longer period may be reasonable.
Both the length of the window and the amount of the due diligence fee are negotiable. You can offer a higher fee in exchange for a shorter window or request a longer window with a more modest fee. You can also negotiate related contingencies, such as financing or appraisal, so that key protections survive if your due diligence window ends.
Smart strategy for North Fulton buyers
Prioritize and schedule fast
- Day 0 to 2: confirm dates and the delivery method for notices, pay any required fees or deposits, and schedule the general inspection and priority follow-ups such as termite or septic.
- Day 3 to 7: review the inspection report with your agent, line up contractor quotes if you plan to negotiate repairs, and work through HOA, title, and lender requirements.
- Final days: choose a path. Either deliver a termination notice, confirm you will proceed, or submit a repair or credit request in writing before the deadline.
Communicate clearly and document everything
Follow the delivery rules in your contract when sending notices. Keep proof of delivery, such as a read receipt or a signed acknowledgment from the other agent. When you request repairs or credits, be specific. Attach the relevant inspector notes or contractor estimates so your request is clear and practical.
Balance a strong offer with the right protections
In multiple offer situations, you may be tempted to shorten or waive your due diligence and increase deposits to stand out. That can work, but it raises your risk. If you prefer a more conservative approach, keep a meaningful window, often 7 to 10 days, and pair it with financing and appraisal protections that match your risk tolerance.
Repairs versus credits during due diligence
Within the window, you can typically ask the seller to make repairs, offer a closing credit, or agree to a price adjustment. The seller can accept, counter, or decline. Your leverage usually declines after the window ends unless the seller has agreed in writing to specific repairs or your contract has a repair process that survives the deadline. Use the inspection report to focus on material items that affect safety, function, or structure. Cosmetic items rarely carry weight.
Local factors to consider in Roswell
- Historic or older homes: if you are considering a home in an older neighborhood, evaluate electrical systems, crawlspaces, foundation elements, and any historic review requirements for exterior changes.
- Termite risk: Georgia’s climate favors wood destroying insects, which makes a termite inspection a practical step for most homes.
- Flooding and drainage: homes near waterways or in low areas should be checked for flood zone status and drainage patterns. A current survey and grading or shoreline evaluation can help you plan improvements.
- HOAs: many Roswell and North Fulton communities have active associations. Review covenants, rules, budget health, and any planned capital projects early.
A simple 7 to 10 day action plan
- Confirm your Effective Date and Due Diligence Deadline on Day 0.
- Pay the due diligence fee and deposit earnest money as the contract requires.
- Book the general inspection immediately, then add termite, sewer, septic, or other specialists as needed.
- Request and review the seller’s property disclosure if provided. Ask for repair records, permits, and any past insurance claims information the seller is willing to share.
- Start title review and obtain HOA documents if applicable. Scan for restrictions and financial red flags.
- Coordinate with your lender on underwriting conditions and the appraisal schedule. Send requested documents quickly to avoid delays.
- Check flood zone status and obtain insurance quotes if the home is in or near a floodplain.
- Order contractor estimates for any significant repair items or planned renovations.
- Decide in writing before the deadline. Send either a termination notice or a repair or credit request, or confirm that you will proceed.
Practical checklist for Roswell buyers
- Verify contract dates, the delivery method for notices, and the exact deadline
- Pay the due diligence fee and deposit earnest money on time
- Schedule a general inspection and termite inspection right away
- Add specialty inspections based on the property and inspector recommendations
- Review the seller’s disclosure and request relevant records
- Review title and survey items with your closing attorney or title company
- Obtain and review HOA covenants, bylaws, rules, financials, and recent minutes
- Confirm lender timelines and appraisal scheduling
- Check flood zone status and secure insurance quotes
- Gather contractor estimates and finalize your plan
- Deliver written requests or termination before the deadline
The bottom line
The due diligence period is your chance to verify, negotiate, and decide with confidence. When you move quickly on inspections, coordinate title, HOA, and lending tasks, and keep a clear eye on the deadline, you protect your leverage and your budget. If you want a local partner to help you navigate these steps and craft a competitive offer in Roswell, our team is ready to guide you.
Ready for a move in Roswell or North Fulton? Connect with Unknown Company to Receive Exclusive Listings and personalized guidance.
FAQs
What is Georgia’s due diligence period in a home purchase?
- It is a negotiated window in many Georgia contracts that lets you inspect the home, review records, coordinate financing, and decide whether to proceed or terminate by a set deadline.
What happens to earnest money and the due diligence fee if I terminate on time?
- Under common Georgia practice, if you terminate in writing before the deadline, earnest money is typically refundable and the seller usually keeps the due diligence fee. Review your specific contract.
How long is a typical due diligence period in Roswell?
- It often ranges from 5 to 14 days, with 7 to 10 days as a common middle ground. The length is negotiable and depends on market conditions and your needs.
Can I extend the due diligence period if I need more time?
- Yes, but only if both parties agree in writing. Extensions can come with tradeoffs, such as additional fee, adjustments to deposits, or other amended terms.
What if I find a major issue after the due diligence deadline?
- Your options are more limited unless a contingency or written agreement survives the deadline. You can try to negotiate, but refusing to close could put your earnest money at risk. Identify major items early.
