New North Carolina Real Estate Terminology: Due Diligence. Due Diligence Fees. Due Diligence Periods.

By
Real Estate Broker/Owner with Realty Arts

Due Diligence.   Such an old concept in investing.  And something entirely new for North Carolina REALTORS® for 2011.

After years of "warning" us, the NC Association of REALTORS® and the NC Bar Association came together with major revisions, major simplifications, of the Standard Offer to Purchase and Contract.

Yep. We are going to have a new path through the wilderness.....

North Cary Park

Gone are inclusions of language regarding extent of repairs, negotiable repairs, and various timeline deadlines.

Gone are Alternative 1 and Alternative 2.

And the form has been massively reorganized, to bring several components of the contract into proximity in the form, rather than requiring agents and clients to hop scotch through the paperwork for details.

We are down to a few dates:

Effective Date of Contract.  The clock is ticking.

Due Diligence Period End Date.  Investigation, survey, appraisal. lending confirmation, repair negotiations, insurability, all rolled into one date, at which time the Buyer will decide to proceed or go fishing.  No further contingencies for Buyer termination, unless Seller is unable to convey insurable and marketable title via General Warranty Deed.

Settlement Date, when we all go to the attorney's office and execute deeds, mortgages, etc.

Closing Date, when recording happens.  Which most often will be the same as Settlement Date.

Of course, these revisions led to revision of many other supporting forms, agency and listing agreements, disclosures, etc.

What Fun!  Bring on the New Year.  Let's turn these dogs loose and see how they hunt!

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Scan the QR Code with your Smartphone to Email MeQR CodeMike Jaquish, REALTOR®

919-880-2769 www.RealtyArts.com

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Independent Broker/Owner, Realty Arts

130 Towerview Court,

Cary, NC

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Rainmaker
374,942
Robin Dampier REALTOR®
Coldwell Banker King - Hendersonville, NC
Hendersonville & Western NC Real Estate Source

Ah yes, the new forms.  It seems it will become very important to get those dates into a realistic time frame, or, it becomes easy for folks to walk if they want out of the deal.  I forsee lots of extensions of Contract Times being added to Contracts with willing Buyers and Sellers.

Have you used the new forms as yet?

Sue of Robin and Sue

Dec 19, 2010 11:46 PM #1
Rainmaker
769,626
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Sue,

I have a couple of listing agreements floating around, and a couple of buyer agency agreements.

I think the new structure is an improvement, and I embrace it.  That was a concious decision, when I recognized that I had no other alternative.

Property will still get sold.  It will just take ready, willing, and able buyers and motivated sellers.  As always.....

Dec 19, 2010 11:49 PM #2
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Rainmaker
769,626

Mike Jaquish

919-880-2769 Cary, NC, Real Estate
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