A buyer representative in Winston-Salem is preparing an exam-prep note on due diligence fee, due diligence period, and Effective Date. Which statement best applies under current North Carolina law?
Correct Answer
D) Because the due diligence fee is normally paid directly to the seller, it is distinct from trust money governed by the escrow rules.
Because the due diligence fee is normally paid directly to the seller, it is distinct from trust money governed by the escrow rules.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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