You found a home you love in Roswell and your offer was accepted. Now the clock starts ticking. The due diligence period can feel like a sprint with high stakes, especially if you’re balancing inspections, loan steps, and negotiations. You want to protect your earnest money, understand your options, and make a confident decision before the deadline. This guide breaks down how Georgia’s due diligence period works, what to do each day, and how to use your leverage wisely in North Metro Atlanta. Let’s dive in.
What the due diligence period is
In Georgia, the due diligence period is a negotiated part of the purchase contract. It is not required by state law, but it is widely used in the Atlanta area. When included, it gives you a clear window to investigate the property and decide whether to move forward.
Key terms you’ll see in many Georgia contracts:
- Due diligence period (DDP): A set number of days when you may terminate for any reason by delivering written notice before the deadline.
- Due diligence fee (DDF): An agreed cash payment to the seller, usually due at or shortly after ratification. Per common contract language, this fee is typically non-refundable to you if you terminate, and it is credited to the seller at closing if you proceed.
- Earnest money (EM): A separate deposit held in escrow by a broker, title company, or closing attorney. If you properly terminate within the allowed periods, you can usually recover your earnest money under the contract terms.
During the due diligence period, you may complete inspections, review title and HOA documents, check insurance and zoning, and use what you learn to negotiate or to walk away. Loan and appraisal contingencies, if included, have their own deadlines that are separate from the DDP.
How long it lasts in Roswell
There is no standard length. Your offer sets the date. In North Metro Atlanta, typical ranges depend on market conditions and the property’s complexity:
- 3–5 days: more competitive offers in a hot market
- 7–14 days: common middle ground
- 14+ days: complex properties or long-distance buyers
Shorter periods can strengthen your offer, but they leave less time for inspections and decisions. The length and the due diligence fee are negotiable.
What you can do during DDP
You have the right to investigate the home and the broader risk factors that affect your ownership, budget, and plans.
Typical inspections to consider:
- General home inspection
- Wood-destroying organisms (termite) inspection
- Sewer line scope, especially for older homes or if there are slow drains
- HVAC, roof, chimney, pool, electrical, structural engineer (as indicated)
- Radon or other environmental tests if desired
Non-inspection due diligence items:
- Title review and any exceptions in the title commitment
- HOA covenants, rules, financials, resale packet, and possible transfer fees
- Local rules for historic districts or overlays that affect exterior changes
- Flood zone review and insurance availability and cost
- Permit history for past renovations and additions
- Utility connections, tap fees, and any special assessments
- Property tax status, assessments, and potential appeal considerations
Your timeline from Day 0
A practical sequence helps you use every hour of your window.
- Day 0 (ratification): Confirm the exact due diligence end date and time in writing. Pay the due diligence fee and earnest money as required by the contract.
- Day 0–1: Book inspectors immediately. Local availability can compress your window fast. Secure general inspection, termite, and any specialty inspectors you anticipate.
- Day 1–3: Complete inspections and receive reports. Ask for same- or next-day report delivery when possible.
- Day 2–6: Review results with your agent and, if needed, get quick contractor estimates to support a repair or credit request.
- Last day of DDP: If you choose to terminate, deliver written notice by the method required in the contract and before the deadline. Late notice can put your earnest money at risk.
Keep your lender and appraiser moving on their timelines. Loan and appraisal contingencies, if present, will have separate dates to track.
Smart negotiation after inspections
Once you understand the property’s condition, you have several options before the due diligence deadline:
- Proceed as-is
- Ask for specific repairs
- Request a credit or price reduction instead of repairs
- Propose an escrow holdback managed by the closing attorney if work cannot be done before closing
- Terminate within the due diligence window if the issues are not acceptable
In competitive markets, sellers often prefer credits over repairs. Focus on material items that affect safety, structure, major systems, or clear code or legal concerns. Decide which items are true deal-breakers for you and which are manageable.
Fees, refunds, and termination
Knowing what happens to each dollar helps you make calm choices under deadline pressure.
- Due diligence fee: Typically paid to the seller and credited to the seller at closing. If you terminate, this fee is usually not refunded to you, even if you cancel within the due diligence period. Check your exact contract language.
- Earnest money: Held in escrow. If you terminate properly within the due diligence period or another contingency period, you can typically recover your earnest money. If you miss deadlines or terminate improperly, the seller may be entitled to keep the earnest money and may have other remedies.
- Termination mechanics: Termination must be in writing, delivered exactly as the contract requires, and received before the deadline. Missing the cutoff by minutes can cost you your walkaway rights.
- Disputes: If there is a disagreement over earnest money, the escrow holder may keep funds in escrow until both parties agree or a third party decides, depending on the contract.
Should you waive or shorten DDP
Shortening or waiving the due diligence period can strengthen your offer, but it raises your risk because you have fewer unilateral rights to cancel after inspections.
If you are considering a shorter period:
- Line up inspectors who can deliver reports within 24–48 hours
- Focus on high-impact inspections first (roof, HVAC, sewer, structure)
- Be clear on your exit plan if results are not acceptable
- Track loan and appraisal contingency dates so you do not rely only on due diligence rights
If you are considering waiving due diligence, be sure you understand that you are reducing your contractual ability to terminate based on inspections.
Roswell-specific watchouts
Roswell and North Fulton have local factors you should check during your due diligence period:
- Historic districts and overlays: If the home is in or near a historic area, review local preservation rules that can affect exterior changes.
- HOA documents: Many Roswell neighborhoods have HOAs. Review covenants, architectural approval rules, fees, and resale packets.
- Floodplain and insurance: Some areas are more flood-prone. Confirm flood zone and get an insurance quote early. Cost and availability can affect affordability.
- Permit and renovation history: Older Roswell homes often have additions. Verify permits for past work.
- Inspector availability: Local inspectors and contractors book fast. Schedule immediately at ratification to avoid delays.
Quick-start checklist
Do these items immediately at ratification:
- Confirm due diligence end date and time in writing
- Pay due diligence fee and earnest money per contract
- Book general inspection, termite, and any needed specialty inspectors
- Request HOA resale documents and covenants
- Ask your insurance agent for a preliminary quote, including flood if applicable
- Notify your lender of ratification and confirm appraisal order timing
Have these documents and contacts at hand:
- Executed contract with all contingency dates highlighted
- Your agent’s contact and your closing attorney or escrow holder contact
- Inspector list and scheduling confirmations
- Lender contact and loan contingency dates
- HOA contact and the status of resale documents
- A simple tracker for due dates and delivered notices
Bottom line
The due diligence period protects you when you use it well. Move fast on inspections, focus on the big-ticket risks, document everything in writing, and deliver any termination before the deadline if needed. With clear timelines and a realistic strategy, you can keep your options open and your earnest money protected in Roswell’s market.
If you want a calm, step-by-step plan tailored to your offer and timeline, reach out to Amy Pedersen for local, high-touch guidance that keeps your interests first.
FAQs
Is the due diligence period required in Georgia
- No. It is a negotiated contract term used widely, but the parties decide whether to include it and how long it lasts.
What is the difference between the due diligence fee and earnest money
- The due diligence fee is typically paid to the seller and is usually non-refundable. Earnest money is held in escrow and is generally refundable if you terminate properly under the contract.
Can I schedule inspections after the due diligence period ends
- You can, but you likely lose your unilateral right to cancel tied to the due diligence period. Your protections are reduced unless another contingency applies.
What if the seller refuses all repair requests
- You may accept the home as-is, negotiate a credit or price reduction, or terminate within the due diligence period. After the deadline, your options narrow unless other contingencies apply.
What happens if I miss the due diligence deadline by a little
- Deadlines are strict. Missing by minutes can forfeit your right to terminate and may put your earnest money at risk. Deliver notices exactly as the contract requires.
Should I waive the due diligence period to win the house
- Waiving can make your offer stronger, but it increases risk because you have fewer guaranteed exit rights after inspections. Consider your risk tolerance and current market conditions before deciding.
