Ever heard people talk about the due diligence fee in South Carolina and wondered what it actually buys you? If you are buying in Columbia or anywhere in Richland County, this short window can protect you, help you negotiate, and keep your deal on track. You want clarity on timelines, fees, inspections, and how to avoid costly mistakes. In this guide, you will learn exactly how due diligence works in South Carolina, what to do each day, and how to stay competitive while staying safe. Let’s dive in.
What due diligence means in South Carolina
In South Carolina, the due diligence period is a negotiated timeframe written into your purchase contract. During this period, you can inspect the property and terminate the contract for any reason. Your right to walk away is unrestricted, but you must act before the deadline.
To use this protection, you need to give written notice of termination before the due diligence period expires. Verbal notice is not enough. If you miss the deadline, you lose your unilateral right to terminate under this clause and remain bound by the contract.
Due diligence fee vs. earnest money
- Due diligence fee: Paid to the seller at contract execution. It is generally nonrefundable and compensates the seller for taking the home off the market while you investigate.
- Earnest money: A separate deposit held in escrow by the closing attorney, title company, or broker per the contract. If you properly terminate in writing during due diligence, earnest money is typically returned to you.
- Who keeps what: If you cancel during due diligence, the seller keeps the due diligence fee. Earnest money is typically returned to you if you terminate on time and in writing.
What happens after the deadline
Once the due diligence period ends, you no longer have the unilateral right to terminate under that clause. From there, your protections depend on other contingencies in the contract, such as financing or title. If you default later, the seller’s remedies will follow the contract language, which can include keeping the earnest money.
Timelines and key deadlines in Columbia
Due diligence is negotiable. In our market, buyers and sellers often agree on 7, 10, or 14 days. In competitive situations, buyers sometimes offer a shorter period with a higher due diligence fee to strengthen the offer. In slower markets, you might negotiate a longer period.
Keep these interacting deadlines in view from day one:
- Contract effective date
- Due diligence end date and time
- Earnest money deposit deadline
- Loan application and loan commitment dates
- Title commitment review window
- Closing date
Sample 14-day plan you can follow
- Day 0: Contract signed. Pay due diligence fee to seller and deposit earnest money per the contract.
- Days 1–3: Schedule general home inspection, WDI/termite inspection, HVAC and roof checks, and any needed specialists such as septic, well, pool, chimney, mold, or radon.
- Days 4–10: Receive reports, review findings, and get contractor estimates for significant issues. Request HOA documents and seller disclosures. Order a survey or verify any existing one.
- Days 10–13: Negotiate repairs or credits based on documented issues. Keep your lender updated and track the appraisal.
- By Day 14: Decide. Either deliver written termination before the deadline or proceed past due diligence and move toward closing subject to any remaining contingencies.
Important: Termination must be in writing and delivered by the methods allowed in your contract.
Inspections to schedule early
Start scheduling as soon as the contract is signed. Prioritize items that often uncover major issues or affect insurance.
- General home inspection
- WDI/termite inspection
- HVAC inspection and service records
- Roof inspection and leak history
- Chimney and fireplace inspection if present
- Mold and moisture check if there are signs or history
- Radon testing if you plan long-term occupancy
- Well water quality test and septic system inspection for homes not on municipal utilities
- Pool inspection where applicable
- Pest and rodent inspection if signs are present or the home is older
Document and title review
During due diligence, gather and review documents that affect ownership and use.
- Seller’s Property Disclosure Statement
- HOA documents and any resale certificate if the home is in an association
- Survey to verify boundaries, easements, and possible encroachments
- Title commitment and exceptions, including liens, deed restrictions, and judgments
- Permit records for past renovations and additions
- Any open code violations or permits with the City of Columbia or Richland County
- Floodplain status and insurance requirements if applicable
- Utility availability, recent bills, and any connection or usage fees
Local checks in Richland County
- Confirm building permits for renovations, especially in older neighborhoods where work may have been done without permits.
- Review floodplain information for river-adjacent or low-lying areas where flood insurance may be required by a lender.
- For properties with septic systems, confirm permit records, system capacity, and condition.
- Contact your insurance agent early to confirm insurability and estimate premiums, especially for older roofs or homes near flood-prone areas.
Smart negotiation during due diligence
Sellers in the Columbia area often respond well to focused, well-documented requests. A targeted approach can help you win the home and still protect your budget.
- Strong signals: Shorter due diligence periods and meaningful due diligence fees tend to strengthen offers.
- Focus your asks: Center requests on safety, structural issues, and major system failures. Avoid long cosmetic lists.
- Use credits: Sellers often prefer repair credits or price reductions instead of managing repairs before closing.
- Bring proof: Contractor estimates help quantify requests and speed up negotiations.
- Protect financing: Keep your general inspection protection, but be strategic rather than broad. Avoid waiving financing or inspection protections without professional guidance.
Pitfalls to avoid
- Missing the written termination deadline and losing your right to an earnest money return
- Assuming the due diligence fee is refundable
- Skipping specialized inspections like septic, well, or termite when they apply
- Accepting an as-is contract without confirming financing and insurance implications
Step-by-step buyer checklist
Use this checklist to stay on schedule and reduce stress during your due diligence period.
Before you write an offer
- Ask for the seller disclosure, HOA documents, any survey, utility history, and permit documentation
- Get pre-approved and confirm your lender’s expected loan commitment timetable
- Consider a limited pre-offer inspection if the seller allows
At contract signing
- Spell out the due diligence period in days and the exact expiration date and time
- Set the due diligence fee and earnest money amounts and where each will be delivered
- Set loan application and loan commitment deadlines in the contract
- Confirm who is handling closing and where earnest money will be held
- Provide proof of funds for deposits if requested
During the due diligence period
- Order and schedule general and specialty inspections immediately
- Order or review the survey and confirm boundaries and easements
- Review the seller disclosure and HOA documents
- Order the title commitment and review exceptions with your closing attorney or title professional
- If on well or septic, order testing and inspections right away
- Request receipts for recent major repairs like HVAC replacements
- Get insurance quotes and confirm insurability and premium estimates
- Monitor appraisal and underwriting progress with your lender
When inspection reports arrive
- Categorize issues by safety, structural, major cost, and cosmetic n- Get written estimates for major items
- Prepare a written repair request or credit request using the contract forms
- If issues are unacceptable, deliver written termination before the deadline
Before the due diligence deadline
- Choose and deliver one of two actions in writing:
- Termination notice if you plan to walk away
- Notice to proceed or simply allow the deadline to pass if you intend to continue
- Confirm your lender is on track for loan commitment
After the due diligence period
- Your unilateral inspection-based termination right ends
- Complete any agreed repair credits or seller obligations in writing
- Follow lender, title, and closing timelines to stay on schedule
Moving forward with confidence
Due diligence is your structured window to investigate, negotiate, and decide with clarity. In the Columbia and Richland County market, a smart plan, fast scheduling, and focused requests can help you protect your budget while keeping your offer competitive. If you want a local partner to guide every step, from choosing the right due diligence strategy to connecting you with trusted inspectors and closing attorneys, connect with Hannah Norman for a tailored plan.
FAQs
What is the due diligence fee in South Carolina?
- It is a negotiated fee paid to the seller at contract execution that is generally nonrefundable and compensates the seller while you conduct inspections.
Do I get my earnest money back if I cancel during due diligence?
- Yes, if you terminate properly in writing before the due diligence deadline, earnest money is typically returned per the contract.
How long is a typical due diligence period in Columbia?
- Buyers and sellers often agree to 7, 10, or 14 days, with shorter periods sometimes used to strengthen offers in competitive situations.
What inspections matter most in Richland County?
- General home, WDI/termite, roof, and HVAC are common, with septic, well, radon, mold, pool, and chimney inspections added as the property requires.
What if the seller refuses to make repairs after inspection?
- The seller can refuse; you may negotiate credits or price adjustments, or you can terminate during the due diligence period if you choose.
What happens if I miss the due diligence deadline?
- You generally lose the unilateral right to terminate under that clause and remain bound by the contract, subject to any other contingencies.
