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In Georgia, the buyer's due diligence period:

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Question & Answer

Review the question and all answer choices

A

Is set by law at 14 days

Georgia law does not set the due diligence period at a fixed 14 days by statute β€” this is a common misconception, possibly arising from confusion with other states' statutory inspection periods or with Georgia's specific timelines for other contractual events such as the binding agreement date.

B

Is negotiated between the parties

Correct Answer
C

Does not exist

The due diligence period very much exists in Georgia real estate practice and is one of the most important and commonly used provisions in the GAR Purchase and Sale Agreement β€” stating that it does not exist is entirely incorrect and reflects a fundamental misunderstanding of Georgia contract practice.

D

Is always 30 days

While 30 days is a possible negotiated due diligence period in some Georgia transactions, it is not a legally mandated or default period β€” the length is entirely determined by what the buyer and seller agree to in the contract, and 30 days would be unusually long for a standard residential transaction in most Georgia markets.

Why is this correct?

The Georgia Association of Realtors (GAR) standard Purchase and Sale Agreement explicitly includes a 'Due Diligence Period' as a negotiated term, with a blank for the parties to fill in the agreed number of days β€” there is no Georgia statute mandating a specific length for this period in residential transactions. During the negotiated due diligence window, the buyer has an unconditional right to terminate and receive a full refund of earnest money, making this one of the most powerful buyer protections in Georgia real estate contracts. Because it is negotiated, the period can range from as few as 3-5 days in competitive markets to 30 or more days for complex commercial properties.

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