An office manager in Boone is training a new associate on due diligence fee, due diligence period, and Effective Date. Which statement best applies under current North Carolina law?
Correct Answer
A) Under the standard form, the due diligence fee becomes the seller's property upon the Effective Date and is generally nonrefundable except in limited contract-specified situations.
Under the standard form, the due diligence fee becomes the seller's property upon the Effective Date and is generally nonrefundable except in limited contract-specified situations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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