What exactly is the South Carolina due diligence period, and how does it protect you when you buy in Lexington? If you are a first-time buyer or relocating to the Midlands, the timelines and fees can feel confusing. You want time to inspect, but you also want a strong offer. In this guide, you will learn how the due diligence period works in South Carolina, what to do during that window, and how to structure terms that fit the Lexington market. Let’s dive in.
What due diligence means in SC
The due diligence period is a negotiated window in the South Carolina residential purchase contract. During this time, you can inspect the home, review documents, confirm financing and insurance, and decide whether to move forward. You have an absolute right to cancel during this period if you give written notice before the deadline and follow the contract’s delivery rules.
If you cancel on time, the seller usually keeps the due diligence fee and you typically receive your earnest money back per the contract and escrow procedures. If you continue past due diligence without canceling, you lose that termination right under this clause, and the contract’s other contingencies and deadlines control what happens next.
Two key money terms to know
Understanding the two separate money pieces in South Carolina will help you plan your offer.
- Due Diligence Fee (DDF). This is paid directly to the seller. It compensates the seller for taking the property off the market while you have broad termination rights during due diligence. The fee amount and whether it is credited at closing are negotiable and set in the contract.
- Earnest Money. This is a deposit held in escrow, often by the closing attorney or another designated escrow agent. It is a good faith deposit toward the purchase and is disbursed according to the contract and escrow instructions.
If you terminate within the due diligence window and deliver notice correctly, you typically recover your earnest money while the seller keeps the due diligence fee. If you do not terminate in time and later cannot perform, earnest money may be at risk depending on remaining contingencies and the contract terms.
When the clock starts and stops
The due diligence period usually begins on the effective date of the contract. That is the date the contract is ratified and all signatures are in place. The period runs for the number of calendar days written into your offer.
Your contract will spell out exactly when the period ends and how notice must be delivered. Plan to send any termination in writing well before the deadline and confirm delivery in the way the contract requires. Keep proof of delivery in your records.
Lexington-area timelines and norms
Due diligence length and fee size vary by price point and market conditions in Lexington and the greater Columbia Midlands. Here is what you can expect in many local situations:
- Lengths that are common: 7 to 14 days in many transactions. Shorter periods of 3 to 5 days show strength in multiple-offer situations. Longer windows of 15 to 30 days are used when properties are complex or you need time for well, septic, or relocation logistics.
- Fee patterns: The due diligence fee is negotiable. In many single-family purchases, fees range from the hundreds to the low thousands. In competitive situations, buyers often offer several thousand dollars to make the offer more attractive.
- Earnest money: Amounts vary. Some buyers use a flat amount from about $500 to $5,000, while others use a percentage, often 0.5 to 2 percent. Your final numbers should match your comfort level, the home’s price band, and your strategy.
In neighborhoods with more demand, such as popular suburban communities near Lake Murray or areas like Woodcreek, sellers often favor shorter due diligence and higher due diligence fees. In a slower period, you can often request 10 to 14 days with a moderate fee.
Your due diligence checklist
Use this list to focus your time and keep the process moving in Lexington and across Lexington County.
- General home inspection by a licensed inspector.
- HVAC, electrical, and plumbing specialists if the general inspector flags issues.
- Pest and wood-destroying insect inspection.
- Radon testing if desired.
- Septic inspection if the property is not on municipal sewer.
- Well water testing for quality and yield if the property has a well.
- Roof inspection and age verification.
- Flood zone review and insurance implications if near creeks or Lake Murray.
- HOA or POA documents: covenants, bylaws, fees, financials, minutes, and any pending assessments.
- Zoning and permit history for additions or renovations.
- Survey or boundary verification for lot lines and easements.
- Title search and review by your closing attorney or title company.
Scheduling and sequencing tips
Your time is short, so front-load the most important steps.
- Book the general inspection immediately after ratification. Many inspectors can schedule within the first week.
- If your due diligence is only 3 to 7 days, schedule the general inspection and termite inspection right away and run water, septic, and radon tests at the same time if needed.
- Ask inspectors for electronic reports as soon as they finish, so you have time to negotiate repairs before the deadline.
- Coordinate with your lender early. The due diligence period is not the same as your loan process. Appraisal and underwriting have their own timelines, so keep those contingencies and deadlines in mind.
Negotiation strategies that work
Your offer terms can help you secure the home while still protecting your interests.
- To stand out in a competitive situation, consider a shorter due diligence period plus a higher due diligence fee and reasonable earnest money.
- If you need more time for inspections, request a mid-length period like 7 to 10 days and offer a moderate to higher fee to balance seller risk.
- Be precise with repair requests. Focus on material issues and document them with reports. Use credits or repairs, and confirm all changes by written amendment.
- If financing is a concern, negotiate a clear loan contingency deadline separate from due diligence so your financing protections remain in place.
First-time buyers: simple game plan
You want clarity and a manageable timeline. Here is how to approach it.
- Expect to pay a due diligence fee. Discuss ranges with your agent and closing attorney before you write the offer.
- Aim for 7 to 10 days if the market allows. In multiple-offer settings, be ready to shorten and adjust your fee.
- Book your general inspection within 24 to 72 hours of ratification. Decide in advance which issues are deal-breakers for you.
- Keep your lender in the loop on deadlines for appraisal and underwriting.
Relocating buyers: plan around logistics
If you are moving in from out of state, build a little extra structure into your plan.
- Check inspector availability before you write the offer so you can meet your window.
- If you cannot attend inspections, ask for full reports with photos and a video walk-through.
- For repairs that need quotes, consider negotiating a credit at closing if timing is tight, or allow extra days in due diligence if the market permits.
Common Lexington scenarios
Here is how buyers and sellers often structure terms locally.
- Multiple offers on a well-priced home: 3 to 5 days for due diligence, higher due diligence fee, and strong earnest money.
- Balanced conditions: 10 to 14 days and a moderate due diligence fee may be accepted.
- Homes with septic, wells, or acreage: negotiate a longer or phased due diligence to allow specialized tests.
After due diligence ends
If the deadline passes and you do not terminate, you lose the broad termination right under the due diligence clause. Other contract contingencies can still apply if they were written into your offer with their own deadlines.
If a dispute arises about earnest money after a breach, the escrow agent follows the contract and escrow instructions. If the parties disagree, the funds can be held until there is an agreement or court direction.
Protect your interests
A few simple habits keep you safe and on schedule.
- Put any termination in writing and deliver it before the deadline. Keep proof of delivery.
- Save all inspection reports, emails, and receipts.
- Get any repair or credit agreements in writing through a signed amendment.
- Confirm who is holding earnest money and how deposits are made, then follow the instructions exactly.
Ready to move with confidence?
You deserve a clear plan and a steady guide through due diligence in Lexington, Lake Murray, and the Midlands. If you want help structuring timelines, fees, and inspections so your offer is both strong and protected, reach out to Chad Jones. Let’s Connect.
FAQs
What is the South Carolina due diligence period?
- It is a negotiated window in the contract when you can inspect, review documents, and cancel for any reason if you deliver written notice before the deadline.
How do due diligence fee and earnest money differ in SC?
- The due diligence fee is paid to the seller for the time off market, while earnest money is a deposit held in escrow and applied or refunded based on the contract.
What is a typical due diligence length in Lexington?
- Many buyers use 7 to 14 days. In multiple-offer situations, 3 to 5 days is common, and complex properties may need 15 to 30 days.
What inspections should I prioritize in Lexington County?
- Schedule a general home inspection and termite inspection first, then add septic, well, radon, roof, and any specialist checks based on the home.
Can I get my earnest money back if I cancel in time?
- If you terminate during due diligence and follow the contract’s notice rules, the seller usually keeps the due diligence fee and you typically receive your earnest money back.
What if I need more time for septic or well tests?
- Ask for a longer due diligence period up front or negotiate an extension before the deadline. In competitive settings, balance extra time with a stronger fee.
How does SC compare to states with inspection contingencies?
- South Carolina uses a due diligence fee paid to the seller for broad termination rights during the window. Other states may rely on separate contingencies without a seller-paid fee.
