Georgia Due Diligence Period Explained

Georgia Due Diligence Period Explained

Buying or selling a home in Brookhaven and hearing a lot about “due diligence”? You are not alone. This short window can make or break your deal, and understanding how it works in Georgia helps you protect your money and negotiate with confidence. In this guide, you will learn what the due diligence period means, how long it usually lasts, what to inspect, Brookhaven-specific checks, and how to move fast in the first 72 hours. Let’s dive in.

What due diligence means in Georgia

In Georgia, the due diligence period is a negotiated span of time after both parties sign the contract. During this window, you can investigate the property and, if allowed by the contract, terminate for any reason by giving proper written notice before the deadline.

This is different from other contingencies. Financing, appraisal, and title contingencies are separate and have their own terms and timelines. The due diligence period focuses on inspections, research, and broad buyer discretion to continue or exit, if that right is included in your contract.

Many Georgia contracts also include a due diligence fee. This is a negotiated amount paid to the seller in exchange for granting you the right to inspect and to terminate during the due diligence period.

How long it lasts and how the money works

Typical timelines in Brookhaven

The length is negotiable. In many North Atlanta transactions, you will see 3 to 14 days. Older homes, complex renovations, or specialty inspections can push that longer, often up to 21 to 30 days if the market allows. In a competitive situation, buyers may offer shorter windows to strengthen their offer.

Due diligence fee vs. earnest money

These two payments serve different purposes:

  • Due diligence fee: Paid directly to the seller. It is usually non-refundable and compensates the seller for granting inspection and termination rights during the window. Amounts vary from a few hundred dollars to several thousand based on competitiveness and property type.
  • Earnest money: Held by a neutral party, commonly a title company or escrow agent. Under typical Georgia practice, if you properly terminate within the due diligence period, earnest money is released back to you per contract terms, while the seller generally keeps the due diligence fee.

Always check your signed agreement for exact terms on deposits, refunds, and deadlines.

Termination and notice

If your contract includes a due diligence termination right, timing is everything. You must deliver written notice before the deadline. Miss the cutoff and you could risk your earnest money or other contract remedies. Follow the delivery method spelled out in the contract and keep proof of delivery.

What to inspect during the period

Core inspections most buyers order

  • General home inspection: A certified Georgia inspector checks structure, roof, exterior, interior, electrical, plumbing, HVAC, insulation, and windows and doors.
  • Termite and WDO inspection: Common for VA loans and recommended throughout Georgia.
  • Roof evaluation: Age, active leaks, and remaining life.
  • HVAC evaluation: Performance, age, and service history.
  • Electrical and plumbing: Useful in older homes where materials or prior work may need attention.

Specialty tests to consider

  • Sewer scope: A camera inspection of the main sewer line. Recommended for older neighborhoods or lots with mature trees.
  • Radon test: Radon levels vary in the region; testing is inexpensive and informative.
  • Mold and moisture: If there are signs of leaks or water intrusion.
  • Structural engineer: If the inspector flags foundation or structural concerns.
  • Pool and spa: Mechanical systems, structure, and safety features.
  • Lead or asbestos: For very old homes or if prior renovations suggest risk.

Records, permits, and documents to review

  • Title commitment and recorded easements or restrictions.
  • City and county permit history and renovation records.
  • Property tax and assessment history.
  • HOA covenants, rules, and resale disclosures if applicable.

Brookhaven-specific checks to add

Permits and history across two jurisdictions

Brookhaven incorporated in 2012. Older properties may have permit history within DeKalb County records, while newer work is often under City of Brookhaven records. Search both to confirm what was permitted and inspected.

Drainage, soil, and foundations

Parts of North Atlanta, including Brookhaven, have expansive clay soils. Pay close attention to grading, guttering, and downspouts. Look for pooling water, settlement patterns, and any recent drainage or stormwater work or easements on or near the property.

Utilities and septic checks

Most Brookhaven homes connect to public water and sewer. Verify service with local providers. If the home is on septic, schedule a septic inspection and confirm related permits early in your timeline.

Trees, overlays, and approvals

Brookhaven places emphasis on preserving the tree canopy. If you plan tree work, confirm rules and permits. If the home sits in a local overlay, historic district, or special zoning area, renovation approvals and processes can differ.

Schools, transit, and nearby projects

Verify DeKalb County school assignments directly with the district. If transit access matters to you, check proximity to MARTA. Ask about any planned infrastructure projects that could affect the property or surrounding streets in the years ahead.

Negotiation dynamics that work

Fee and length strategies

In a seller’s market, some sellers favor a higher due diligence fee or a shorter period. You can balance your approach by offering a shorter window with a meaningful fee, or a slightly longer window with a larger fee. Match your offer to the property’s complexity and the level of competition.

Repair options and credits

After inspections, you can request repairs, a price reduction, or a credit at closing. Sellers may prefer a credit or reduction to avoid delays. Buyers often prioritize safety and high-cost items. Keep all requests and responses in writing and within the due diligence window.

After the deadline

If new issues arise after the due diligence period ends, your options depend on the contract and whether the issue was discoverable earlier. Coordinate your inspection findings with financing and appraisal timelines, since lender requirements or appraised value can affect your path to closing.

First 48–72 hours after ratification

Move quickly once your offer is accepted. Here is a practical checklist to keep you on track.

  1. Confirm contract deadlines
    • Verify the due diligence deadline and the exact steps to deliver termination notice. Confirm earnest money and due diligence fee instructions.
  2. Pay and document funds
    • Deliver the due diligence fee and earnest money per contract. Get written receipts.
  3. Order a general home inspection
    • Book a local, certified inspector familiar with North Atlanta homes.
  4. Order termite and WDO inspection
    • Prioritize early scheduling, especially if your loan requires it.
  5. Schedule specialty inspections
    • Sewer scope, radon, roof, HVAC, pool, or others as needed. Start with the items most likely to impact budget or safety.
  6. Request disclosures and HOA documents
    • If not already provided, request seller disclosures and the full HOA resale packet.
  7. Ask for permits and service records
    • Request past permits, renovation receipts, appliance manuals, and warranties.
  8. Start title review
    • Ask the title company to begin the title search and provide preliminary exceptions.
  9. Contact lender and insurance agent
    • Flag potential inspection items that could affect loan approval. Get insurance quotes and confirm insurability.
  10. Check public records
  • Search Brookhaven and DeKalb permits, tax records, easements, and flood maps.
  1. Order or confirm survey
  • If no current survey is available, consider ordering one to check setbacks and encroachments.
  1. Escalate big issues fast
  • If your inspector flags a major item, get a structural engineer or specialist out quickly for quotes within your window.
  1. Centralize your documentation
  • Save reports, photos, receipts, and communications in one place. Track every deadline.

Smart moves for Brookhaven buyers and sellers

  • Front-load scheduling. Inspectors, roofers, and sewer-scope pros book up quickly. Start the moment you go under contract.
  • Align timelines. Coordinate due diligence with financing and appraisal so one does not outlast the other.
  • Focus on high-impact items. Structural, roof, water intrusion, electrical, plumbing, HVAC, and sewer line issues often drive negotiations.
  • Put it in writing. Use the contract’s delivery methods for repair requests, addenda, and any termination notice.
  • Keep perspective. Credits can be cleaner than repairs if contractors are booked or the closing timeline is tight.

If you want a clear plan for inspections, local permitting, and negotiation strategy in Brookhaven and the North Atlanta suburbs, connect with a trusted advisor who can coordinate vendors, track deadlines, and position you to win.

Ready to make your next move in Brookhaven with confidence? Reach out to Casey Rutherford for a focused plan, vetted local pros, and a negotiation strategy tailored to your goals.

FAQs

What is the Georgia due diligence period in home buying?

  • It is a negotiated window after contract signing that lets you inspect the property and, if your contract provides the right, terminate for any reason by written notice before the deadline.

How long is a typical due diligence period in Brookhaven?

  • Many contracts use 3 to 14 days. Older homes or complex renovations may need 10 to 21 days or longer, depending on the market.

What is the difference between a due diligence fee and earnest money?

  • The due diligence fee is paid to the seller and is usually non-refundable. Earnest money is held in escrow and is typically returned to the buyer if they properly terminate during due diligence, per contract terms.

What happens to my earnest money if I terminate during due diligence?

  • Under typical Georgia practice, if you deliver proper written notice before the deadline, earnest money is released to you per the contract. The seller generally keeps the due diligence fee.

Can a seller refuse to make repairs after inspections?

  • Yes. Sellers are not required to make repairs unless they agree to them in writing. You can negotiate credits, a price reduction, or specific repair items.

What do I risk if I waive the due diligence period?

  • You increase the risk of being bound to buy despite defects found later, and you could jeopardize earnest money depending on contract remedies. Consider the trade-offs carefully.

Which inspections are most important for Brookhaven homes?

  • A general home inspection, WDO and termite, roof and HVAC checks, and often a sewer scope. Radon and moisture testing are also common. Add specialists if your inspector flags concerns.

How should I handle permits and records in Brookhaven?

  • Check both City of Brookhaven and DeKalb County permit histories, review HOA documents if applicable, and have your title company start the title search early in the due diligence window.

Work With Casey

Casey Rutherford is relationship driven and results oriented. Connecting with other top real estate agents is a priority for her, as she uses her professional network to win deals, stay informed of off market and coming soon properties, and to proactively market homes for sale. Her keen eye for design allows her to help buyers envision what a home could like and gives sellers the tools they need to prepare their home for market. Your largest investment is Casey’s largest priority.

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