ContractsDue_diligence_fee_period_and_effective_dateMEDIUM
A closing-file reviewer in Concord is answering a client question about due diligence fee, due diligence period, and Effective Date. Which statement best applies under current North Carolina law?
Correct Answer
D) If the seller materially breaches the contract or another listed exception applies, the buyer may be entitled to a refund of the due diligence fee.
If the seller materially breaches the contract or another listed exception applies, the buyer may be entitled to a refund of the due diligence fee.
Answer Options
A
Seller breach never affects the due diligence fee because it always belongs to the seller.B
The fee is refunded only if both parties sign a separate tax form under current North Carolina rulesC
The buyer gets the fee back only if financing is denied under current North Carolina rulesD
If the seller materially breaches the contract or another listed exception applies, the buyer may be entitled to a refund of the due diligence fee.Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
difficulty_3due_diligence_feedue_diligence_fee_period_and_effective_datenc_contract_practice_offer_to_purchasenc_statenorth_carolinarefundscenario_traps_edge_cases_and_enforcementseller_breach_exception
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