Understanding the Due Diligence Period in Georgia Real Estate

When you’re buying or selling a home in Georgia, one of the most important—and sometimes misunderstood—parts of the contract is the due diligence period. If you’re new to real estate in Georgia, you may be surprised by how much authority this clause gives to the buyer.

What Is the Due Diligence Period?

The due diligence period is a negotiated window of time (often 7–14 days, though it can be longer or shorter) that begins once a purchase agreement is signed. During this period, the buyer has the right to investigate the property fully—through inspections, surveys, title work, financing review, or simply by reconsidering their decision.

The Buyer’s Authority: “Back Out for Any Reason”

Here’s where Georgia law is unique:

• Unilateral Right to Terminate – The buyer can terminate the contract for any reason—or no reason at all—during the due diligence period.

• Earnest Money Refunded – If the buyer backs out during this timeframe, their earnest money deposit is returned, provided termination is done properly in writing before the deadline.

• No Explanation Required – The buyer doesn’t need to cite inspection results or financing concerns. They can simply decide not to move forward.

What This Means for Buyers

• It’s your safety net: a chance to thoroughly inspect the home, confirm details, and ensure it’s the right fit before being financially locked in.

• You should use this time wisely—schedule inspections early and review HOA/POA documents so you can make an informed decision.

What This Means for Sellers

• Until the due diligence period expires, the contract isn’t fully secure.

• Homes can go “under contract” but return to the market if the buyer terminates.

• The best protection for sellers is to ensure the home is well-prepared, priced correctly, and free from preventable surprises that might spook buyers.

Final Thoughts

The due diligence period is one of the most powerful protections buyers have in Georgia real estate. It allows them to walk away with no penalty, but it also encourages thorough investigation up front. For sellers, understanding this process helps set expectations and reduce the stress of seeing contracts fall through.

If you’re considering buying or selling in Big Canoe, I can guide you through the due diligence process and help protect your interests every step of the way.