You found a home in Athens and got your offer accepted. Now the clock starts. Georgia’s due diligence period is your window to dig into the details, line up inspections, and decide if the home is right for you. If you are buying your first place or relocating from out of town, this short phase can feel fast. Here is how to use it well so you keep your leverage and buy with confidence. Let’s dive in.
Georgia due diligence basics
The due diligence period is a contract-defined window that allows you to inspect the property, gather information, and negotiate. The length, rights, and procedures depend on the written contract, often a Georgia Association of REALTORS form. Your contract controls what happens if you terminate, request repairs, or miss a deadline. Read it closely and ask questions early.
Due diligence fee vs. earnest money
- Due Diligence Fee (DDF): Paid to the seller when the contract is signed. It compensates the seller for taking the home off the market. Whether it is refundable and how it is applied at closing is negotiated in the contract.
- Earnest Money (EM): Held in escrow by a title company or broker to show good faith. Whether it is refundable depends on the contract and timing of any termination.
Financing and appraisal protections
Financing and appraisal are not automatically covered by due diligence. If you want loan or appraisal protections, they must be written into your contract as separate contingencies. Without those clauses, your ability to terminate for loan or appraisal issues may be limited.
Athens timelines and local norms
Typical Georgia due diligence periods run 7 to 14 days. In a competitive seller’s market, you may see 5 to 7 days. Relocating buyers often ask for 10 to 21 days to allow for travel and scheduling. For in-demand downtown condos, sellers sometimes prefer shorter periods. You can balance a longer timeline with stronger terms like a higher due diligence fee or price.
A sample 10-day game plan
- Day 0: Contract accepted and the due diligence clock starts. Pay the DDF and arrange earnest money per the contract.
- Days 0–1: Order the general home inspection. Schedule time-sensitive specialty inspections like WDO/termite, sewer scope, and radon. For condos, request HOA documents and an estoppel statement immediately.
- Days 2–5: Review the inspection report. Cross-check the seller disclosure. Pull permit history with Athens-Clarke County records.
- Days 3–7: Complete specialty inspections. For condos, review HOA budgets, meeting minutes, reserves, and master policy details.
- Days 7–10: Decide whether to request repairs or credits, proceed as-is, or terminate. Deliver any amendments or termination in writing before the deadline.
Local factors to check early
- Scheduling: Inspectors are plentiful, but specialists like sewer-scope vendors and certified HVAC techs can book out. Order early.
- Downtown living: Near UGA you may see more activity, parking limits, and rental-use rules. Confirm zoning and any HOA rental policies.
- Permits and renovations: Pull Athens-Clarke County permit records to verify additions or major updates.
- Flooding and drainage: Review FEMA flood zone status and local stormwater information, especially for low-lying or near-stream properties.
What to inspect during due diligence
You want a full picture of condition, costs, and constraints. Prioritize items that affect safety, structure, major systems, insurance, and resale.
Core inspections
- General home inspection covering structure, electrical, plumbing, roof, HVAC, interior, exterior, and appliances. Ask for a written report with photos.
- WDO/termite inspection. Lenders commonly require a clear report, and Georgia has elevated termite risk.
- Roof evaluation if age or condition is uncertain.
- HVAC servicing or evaluation for older systems.
- Sewer scope for older or clay lines; septic inspection if applicable.
- Radon test if you have concerns. Levels can vary across Georgia.
- Pool or spa inspection, including safety and equipment.
- Lead-based paint and asbestos risk-based checks for homes built before 1978, especially if you plan to remodel.
Condo and HOA due diligence
- Full document packet: bylaws, covenants, and rules.
- Estoppel letter showing fees owed and any fines or special assessments.
- Financials: budget, reserves, recent meeting minutes, insurance details, and any litigation updates.
- Rental and occupancy policies, parking rules, and short-term rental restrictions.
- Transfer fees and maintenance responsibilities between owners and the association.
Title, survey, and legal checks
- Early title commitment review to identify liens, easements, covenants, or use limits.
- Survey to confirm boundaries, encroachments, and easement locations, especially for in-town lots.
- Local code and permit search for additions and major work.
Insurance and hazard review
- Confirm flood zone status and obtain quotes if the property is in a floodplain.
- Ask your insurer about premiums and coverage availability, particularly for older structures or unique condos.
- Investigate any drainage, moisture, or mold history noted in disclosures or inspection reports.
Practical checks
- Utilities: meter locations, service capacity, and recent bills if available.
- Property taxes and special assessments.
- Neighborhood practicalities like parking, peak noise times, and commute patterns to UGA, hospitals, or major employers.
Use your DDP to negotiate
You have options during due diligence. The right path depends on what inspections reveal and how the seller responds.
- Terminate per the contract within the deadline. If done correctly, earnest money is often refundable under the contract terms. Treatment of the DDF depends on the agreement.
- Request repairs or credits using a written amendment. Include reports and estimates to support your request.
- Accept the property as-is and move forward.
- Negotiate an extension of the due diligence period or other concessions. Any change must be in writing.
Best practices for notices and amendments
- Put everything in writing using the contract’s amendment forms.
- Deliver notices per the contract methods and keep proof of delivery.
- Be specific in your requests and attach documentation.
- Watch the clock. If you miss the deadline, you may lose your right to terminate without penalty.
How fees are commonly treated
- Due Diligence Fee: Commonly non-refundable to the seller but often applied to the purchase price at closing if you proceed. The contract must state the exact treatment.
- Earnest Money: Often refundable if you terminate properly within the due diligence window. If you terminate late or outside of a contingency, it may be at risk under the contract.
Financing and appraisal reminders
- A separate financing contingency allows termination for loan issues within its timeline. Without it, financing problems may not allow termination.
- Appraisal shortfalls require an appraisal contingency or explicit agreement. Otherwise, the seller can refuse a price change and you may need to decide whether to proceed or negotiate another path.
Athens buyer checklist
Use this checklist to stay organized from offer to closing.
Before you write the offer
- Choose a due diligence length that matches your schedule, especially if you are relocating.
- Decide on a due diligence fee and earnest money that fit your risk tolerance and offer strategy.
- Line up inspectors and plan who will attend.
First 48 hours after acceptance
- Pay the DDF and arrange earnest money per the contract.
- Order the general inspection and specialty inspections you anticipate.
- For condos, request HOA documents and the estoppel statement.
- Contact the title company for escrow instructions and timing.
- Review the seller property disclosure as soon as you receive it.
During the due diligence period
- Attend the inspection if possible or review the full report in detail.
- Complete specialty inspections: WDO, sewer, radon, HVAC, roof, pool, chimney as needed.
- Review HOA budgets, minutes, reserves, insurance, and any special assessments.
- Pull Athens-Clarke County permit history for additions or major updates.
- Check FEMA flood status and insurance implications.
- Get contractor estimates for any major issues.
- Review the title commitment for liens, easements, and exceptions.
- Consult a real estate attorney for complex title or HOA matters if needed.
Decision point before the deadline
- Choose to: terminate, request repairs or credits, or accept as-is.
- Send amendments or termination in writing with proof of delivery.
After due diligence and before closing
- Confirm agreed repairs are scheduled and completed. Collect receipts and any warranties.
- Re-inspect significant repairs.
- Keep your loan process, appraisal, and closing tasks on track.
Common mistakes to avoid
- Waiting too long to order inspections.
- Assuming all Georgia contracts work the same. Your contract controls.
- Delaying HOA document requests for condos.
- Relying on verbal promises. Get all changes in writing.
- Not confirming payment and handling of DDF and earnest money with the title or escrow company.
Final thoughts
Your due diligence period is short, but it is powerful. When you act quickly, review documents carefully, and keep everything in writing, you protect your options and set yourself up for a smooth closing. If you are relocating or buying near downtown, a clear plan lets you move fast without missing key details.
If you want a local, detail-driven partner to guide you through due diligence in Athens and nearby Oconee County, connect with Gena Knox. I would love to help you buy with clarity and confidence.
FAQs
What is the due diligence period in Georgia?
- It is a contract-defined window for you to inspect, investigate, and negotiate before deciding to proceed, request changes, or terminate per the contract.
How long is a typical due diligence period in Athens?
- Many offers use 7 to 14 days, with 5 to 7 days in competitive situations and up to 10 to 21 days for relocating buyers who need extra time.
Which inspections are most important for Athens homes?
- A general inspection and WDO/termite check are core, with sewer scope, HVAC, roof, and radon testing commonly added based on age and condition.
What should I review for an Athens condo near downtown?
- Request the full HOA packet, estoppel, financials, insurance, meeting minutes, rental rules, parking policies, and any special assessments or litigation.
What happens to my earnest money if I terminate within due diligence?
- If you terminate properly and on time under the contract, earnest money is often refundable, while the due diligence fee treatment depends on the agreement.
Can I extend the due diligence period if I need more time?
- Possibly, but only if the seller agrees and both parties sign a written amendment before the deadline.
