Purchasing a piece of real estate is a big decision, and the process can be intimidating. In Georgia, it is customary to provide an inspection period for the buyer to be able to go over every detail of the property and purchase agreement. The due diligence period in Georgia gives you time to think about your decision and discover any flaws that could affect the sale.
Due Diligence Period Georgia
With the due diligence period, Georgia homebuyers typically get between 10 and 14 days after putting down earnest money. You have this time to raise any objections that you have, and any complaints that are lodged after this time can mean forfeiture of your earnest money. Keep in mind that the due diligence period is firm and ends at the exact time on the contract and not one minute after.
When Does Due Diligence Start in Georgia?
To calculate the due diligence period in Georgia, you must look at a copy of your Purchase and Sale Agreement. You will find a section called Binding Agreement Date. This is the date that is used for determining all deadlines within the contract.
You also need to find the section titled Property Sold Subject to Due Diligence or "As-Is." You need to see which of these items has a checkmark beside it. There is no due diligence period for "as is" properties. If the box is checked that says Contract Is Option Contract, then there will be a number of days entered during which you may terminate the agreement for any reason.
The due diligence date is the number of days entered on the line for the Contract Is Option Contract section from the Binding Agreement Date. What day does due diligence start? Counting time begins at the time of final contract acceptance.
Is due diligence in business days? Day one of the due diligence period begins the next business day after the contract is accepted. A business day is considered as starting at 8 a.m. and ending at 7:59 a.m. the next day.
What Time Does Due Diligence End in Georgia?
The business day begins at 8 a.m., the first business day following the date of contract acceptance. If you sign the contract at 7:45 a.m., Monday, the time begins 15 minutes later at 8 a.m. Monday. If you do not sign until 8:01 a.m., then the time begins at 8 a.m., the next day on Tuesday.
Business days do not include Saturdays, Sundays or federal holidays. If you sign a contract at 9 a.m. on the Friday before Memorial Day weekend, the due diligence period does not begin until 8 a.m. on the following Tuesday. The due diligence period ends at 7:59 a.m. on the last business day after the day following the day the contract is signed. If you sign a contract on the Friday before Memorial Day weekend, you have just extended the due diligence period by three days.
Let’s say you sign a contract where the due diligence period is 10 days. If you signed on Monday, May 10, 2021, then your due diligence period would end at 7:59 a.m. on Tuesday, May 25.
Keep in mind that there may be addendums at the end of the contract that change the way due diligence is calculated that you need to consider in the calculation.
Adam Luehrs is a writer during the day and a voracious reader at night. He focuses mostly on finance writing and has a passion for real estate, credit card deals, and investing.