Buying in Henry County and keep hearing about the “due diligence period”? You are not alone. This short but critical window can save you from costly surprises and help you negotiate with confidence. In this guide, you will learn exactly what due diligence means in Georgia, what to do first, how the fees work, and which Henry County checks to prioritize so you stay protected. Let’s dive in.
What due diligence means
In Georgia, the due diligence period is a negotiated time in your purchase contract when you can fully investigate a home and decide to move forward or walk away. The right comes from the Residential Purchase and Sale Agreement that you and the seller sign. During this period, you can order inspections, review title, confirm financing details, and verify permits and records.
If you decide the home is not right for you, you can usually terminate within the deadline set in the contract. The seller typically keeps your due diligence fee, but your earnest money is generally refundable if you follow the contract’s notice rules. Always read your contract and ask a real estate attorney or title company if you have legal questions.
Due diligence money: fee vs. earnest
Understanding the two money pieces in Georgia contracts will help you avoid confusion:
- Due diligence fee: A negotiated payment made directly to the seller when your offer is ratified. It is usually non-refundable. If you terminate during due diligence, the seller typically keeps this fee.
- Earnest money: A deposit held in escrow by a broker, escrow agent, or title company. If you terminate according to the contract during the due diligence period, this is usually returned to you. After the period ends, your ability to get it back is more limited.
Keep these funds separate in your mind. The fee is seller money for taking the home off the market. The earnest money is your deposit held by a neutral party.
What to check in week one
Your time is limited. Book and complete these items early so you have room to review results and decide next steps.
Inspections and tests
- General home inspection to review structure, roof, electrical, plumbing, and HVAC.
- Pest and termite inspection.
- Radon test if desired. Radon mitigation is less common in Georgia but can be relevant.
- Specialized inspections as needed: chimney, pool, mold, structural, roof.
- Septic evaluation if the property uses a septic system.
- Well water testing for bacteria and other contaminants if on a private well.
Title and survey
- Order a title search and review the preliminary title commitment and exceptions.
- Confirm easements, encroachments, and deed restrictions.
- Order a boundary survey or review any existing survey to confirm lot lines, setbacks, and driveway access.
Financing and appraisal
- Work with your lender to keep underwriting on track.
- The lender will order the appraisal. If value comes in low, you may need to renegotiate or rely on contract contingency terms.
HOA or POA documents
- Review covenants, bylaws, rules, budgets, reserve funds, and any pending or recent assessments.
Permits and property history
- Verify permits for additions, decks, garages, and system updates.
- Look for open permits or code issues that could delay closing.
Insurance and hazards
- Get homeowner insurance quotes and confirm insurability.
- Check flood risk and whether flood insurance is required or recommended.
Utilities and services
- Confirm the water and sewer provider. If private systems, confirm well and septic details.
- Ask about trash pickup, natural gas availability, and any private road or HOA maintenance.
Henry County checks to prioritize
Henry County has its own records and systems you should verify during due diligence:
- Floodplain review: Check FEMA Flood Insurance Rate Maps and the county’s GIS flood layers to confirm flood zone status. Ask your lender or insurer whether flood insurance is required and what it could cost.
- Septic and well records: Contact Henry County Environmental Health for septic permits, past records, and any recommended inspection steps. For private wells, request water test guidance and construction details.
- Permits and code: Ask Henry County Building and Planning or Permitting for permit history, closed and open permits, and any code enforcement records. Unpermitted work may require retroactive permits or repairs.
- Property taxes and exemptions: Review the Henry County Tax Commissioner or Assessor records for current taxes, homestead exemptions, and assessment history. Note that tax bills can change after a sale.
- Utilities and service areas: Confirm whether county water or a municipal provider serves the address. Identify cable and internet options and whether roads are public or private.
- School boundaries: Use Henry County Schools resources or county GIS to confirm current school assignments by exact address.
- Local title and attorneys: Local title companies and real estate attorneys understand county-specific easements, private road agreements, and other common issues. Use local counsel for nuanced title questions.
Timelines and strategy
The length of due diligence is negotiated. In a buyer-friendly market, 10 to 21 days can be common. In a hot seller market, you may see 3 to 7 days or requests to waive due diligence. In multiple-offer situations, some buyers offer larger due diligence fees or shorter periods to stand out.
Plan your timeline so inspections and essential reviews finish well before the deadline. If your period is short, have inspectors ready to go and prioritize the highest-risk items first, such as roof, foundation, septic, and flood risk. If you need a longer period, explain to the seller why that time protects both parties by surfacing issues early.
How to terminate correctly
If you decide not to proceed, your notice must follow the contract’s rules. Pay attention to:
- Deadline: Termination must arrive before the due diligence expiration date and time.
- Method of delivery: The contract spells out how notice must be delivered and to whom.
- Documentation: Keep proof of delivery. Save emails or signed confirmations so there is no ambiguity.
If you terminate properly during due diligence, you generally forfeit the due diligence fee, and your earnest money is usually returned per the contract. If you miss the deadline or do not deliver notice correctly, your earnest money may be at risk.
Common pitfalls to avoid
- Waiting to schedule inspections. Slots fill quickly. Book on day one.
- Mixing up due diligence fee and earnest money. They serve different purposes.
- Ignoring permit history. Unpermitted additions can delay closing or cost you later.
- Skipping flood checks. Even outside mapped high-risk zones, ask about past drainage or water issues.
- Overlooking HOA rules. Read for rental caps, parking rules, and architectural guidelines.
- Not ordering a survey. Encroachments and easements matter to long-term use and value.
- Assuming the appraisal solves everything. Financing and appraisal contingencies are separate from due diligence and follow their own timelines.
Simple timeline checklist
Use this quick sequence to stay on track.
Day 0: Contract ratified
- Pay the due diligence fee to the seller and deposit earnest money with the escrow holder per contract instructions.
- Order the general inspection and any specialty inspections, including septic and well if applicable.
- Request HOA documents and order a survey.
- Share lender and attorney contact details with the seller’s side for smooth coordination.
Days 1 to 3
- Complete inspections and water or septic tests.
- Order the title search and review the preliminary commitment.
- Request permit history from Henry County Building and Planning.
- Check the county GIS for parcel lines, flood maps, and zoning information.
Days 4 to 7
- Review inspection reports and title items with your agent and, if needed, an attorney.
- Submit repair requests or negotiate credits.
- Track lender milestones and confirm appraisal status.
By the due diligence deadline
- Decide to proceed, renegotiate, or terminate.
- If terminating, send written notice exactly as the contract requires and save proof of delivery.
After due diligence but before closing
- Clear lender conditions, resolve any title exceptions, and finalize insurance.
Move forward with confidence
A smart due diligence plan protects your money, your time, and your long-term enjoyment of the home. By acting fast on inspections, verifying Henry County records, and following the contract’s steps to the letter, you give yourself the freedom to make a confident yes or a timely no.
If you want local guidance from contract to closing, The Legacy Real Estate Group is here to help you navigate inspections, county records, and negotiations in Henry County and the surrounding counties. Get your instant home valuation and connect with a local expert today.
FAQs
What is Georgia’s due diligence period?
- It is a negotiated time after contract signing when you can inspect, review records, and decide to proceed or terminate under the contract’s rules.
What is the difference between earnest money and the due diligence fee?
- The due diligence fee goes to the seller and is usually non-refundable. Earnest money goes to escrow and is generally refundable if you terminate during due diligence as the contract allows.
Can I back out for any reason during due diligence?
- Generally yes, if you follow the contract’s notice procedures and meet the deadline. You usually forfeit the due diligence fee, and your earnest money is typically returned.
How long is a typical due diligence period in Henry County?
- It varies with the market. You may see 10 to 21 days in balanced markets and 3 to 7 days or shorter in hot seller markets.
What inspections should I prioritize in Henry County?
- General home, termite, septic if applicable, and well water testing if the property is on a private well. Add roof, structural, or pool evaluations as needed.
Do I still need financing or appraisal contingencies?
- Yes. These are separate from due diligence and depend on your contract and lender requirements.
Who holds earnest money in Georgia?
- The broker’s trust account, an escrow agent, or a title company, as specified in the contract.
How do I terminate properly during due diligence?
- Deliver written notice the way the contract requires, to the correct party, before the deadline. Keep proof of delivery to protect your earnest money.
